A method that uses a composite of all prices paid for an item during the inventory period to evaluate the inventory.

A document used to adjust information about product quantities or costs recorded on a delivery invoice; it specifies items to be deducted from the amount owed and explains the reason why the credit is being granted.

An estimate of cost based on requisitions, transfers, and sales. To determine daily food cost, the daily requisitions for that unit are totaled. Transfers from that unit to another unit are subtracted and transfers into the unit are added to the requisition total to determine the daily food cost for that unit. This total number is divided by the unit’s sales to determine a daily food cost percentage.

Items that are charged to food cost as they are received by the operation, on the assumption that these perishable items will be used immediately.

Multiplying the number of units of each item by the item’s unit price.

A method commonly used to ensure that refrigerated, frozen, and dry products are properly rotated during storage.

An itemized list of goods and products, their on-hand quantity, and their dollar value.

A method of categorizing the operation’s food and supplies.

A measure of how quickly an item in storage is used.

Taking food or beverage products from storage.

Delivery of food items and goods after hours when the establishment is closed for business.

An inventory method used when an establishment intends to use the most recently delivered product before using any part of that same product previously on hand.

A method that uses the latest price paid for a product to value an inventory; this is the most widely used pricing method in the restaurant and foodservice industry.

Inflating the inventory for the purpose of reducing the food cost.

A theoretical count based on goods received and issued, which exists on paper only.

An actual physical count and valuation of all items on hand.

Food contained in a package in which (a) oxygen has been removed, (b) oxygen has been displaced with another gas or combination of gases, or (c) something else has been done to reduce the oxygen content to a level below that which is normally found in air; also called reduced oxygen packed bulk food.

A form listing the items and quantities needed from the storeroom.

The amount a shipment actually weighs subtracted from the weight given on its label.

A type of fraud in which frozen seafood is thawed to appear fresh.

Items that are considered part of the inventory until issued for use in an establishment and are not included in food cost until they are issued.

Food kept out at a temperature of 41°F to 135°F (5°C to 57°C) for a total of more than four hours is unsafe and must be discarded.

Policies and procedures that monitor the amount of time and the ongoing temperature of food products in the flow of food.

A form used to track items going from one foodservice unit to another.

Sets of guidelines established to harmonize business transactions law across states.