Chapter 8 - Intro to Cost Control Vocabulary

The income from sales before expenses, or costs, are subtracted.

• total earnings

• revenue

• costs

• net income

Costs that are incurred only when a meal or service is provided to a guest; a manager can adjust these costs based on the operation.

• adjustable costs

• noncontrollable costs

• nonadjustable costs

• controllable costs

Costs of an operation that stay the same and cannot be adjusted by managers.

• mortgage costs

• noncontrollable costs

• utilities

• controllable costs

A business's efforts to manage how much it spends.

• cost control

• controlling business costs

• financial planning

• costing plan

Costs that do not change, including insurance, utilities, and an operation's lease or mortgage. They are considered fixed.

• utilities

• overhead costs

• controllable costs

• incurred costs

The cost of food items that a restaurant uses to create a menu item for sale.

• beverage costs

• food costs

• production costs

• overhead costs

The costs of all of the staff, from wages to benefits.

• overhead costs

• food costs

• beverage costs

• labor costs

The cost of the ingredients to make a beverage for sale.

• soda costs

• beverage costs

• drink costs

• liquor costs

A financial plan for a specific period of time, most cover one year and are broken into months.

• operating budget

• working budget

• budget plan

• costing plan

A tool that managers use to look at current business trends and predict how these changes will affect the operating budget in the future.

• financial prediction

• forecast

• sales estimate

• business volume prediction