used to record a credit due from a supplier

3 Credit Memo Copies

list of all items received. (delivery arrived without receipt

weight of empty container

Products bought by count should be counted individually.

Goods purchased in case should be examined, do not make sure the entire content is present.

it should be done to verify whether the receiving clerk perform the proper procedure.

is an area that requires special security and planning considerations to minimize the risk to your valuable inventory

controls how and when merchandise is issued and prevent loss,theft and spoilage.

Which is not a Storeroom Personnel's duty?

proper authorization for the release of merchandise and to account properly for daily use

purchased is charged directlytothereceiving outlet

purchases that are sent to storeroom

Storeroom Procedures

Follow specific procedures to maintain sanitationandrefrigeration

Storeroom Procedures

Keep and Audit records of all products as they enter and leave supplier

running tabulation of goods received or issued

usually done every month, discrepancies should be investigated

used to obtain food items from the storeroom, prepared in duplicate by the requesting outlet

designed to identify and price all meat issued, ensures an accurate issue price and weight on storeroom requisitions

the amount that the owner want in profit based on how much is needed to stay in the business and how much return is expected for the investment

Targeted Ideal Cost Possible Problems: (3 answers)

is the expectation of what the food cost shouldbe, ifyou comply with all cost control procedures

where acctg dept records all the financial accounts for the business

it is computed by taking the cost of an item and divided by the yield percentage

cost / yield %

unit cost x units needed

are proportions of the cost of each item to the cost of the whole

selling price

potential cost/menu price

the food cost percentage that we wanted to achieve

potential cost/targeted food cost

number of servings

the number of items purchased per product

Actual Food Cost

- Cost of food sold to customer

- Cost of food lost through poor purchasing practices

- Cost of food lost in receiving and storage

- Cost of food lost in production

- Cost of food lost by the front of the house

is commonly conducted monthly, but it can be based on any period your company selects

Improper valuation of the inventory will cause accurate calculations of gross costs and gross profit

have preprinted lists of all the items in the inventory, with spaces for entering the correct counts of each item

usually done monthly

continuous reporting on hand usually beginning inventory is compared with the sales

REASONS FOR DISCREPANCIES:

- Receiving errors

- Transfers

- Items sold w/ incorrect inventory

- Theft

most companies provide free meals to their employees

the control and reporting of breakage, spoilage, spillage are important aspects of any food service cost control system

food and beverage for the purpose of promotion or tasting should be accounted for on a requisition form and ordered through the storeroom

sales of food or beverage products to employee at cost

is one particular instance in which you can make a bit of revenue on your old or used products,

expenses and revenue are recorded at the given period(monthly) whether or nor cash has been received or paid

ex: receivables

expenses are to be recorded in the time period which they are incurred

A manager has ethical responsibilities in four broad areas:

1. Maintaining a high level of professional competence

2. Treating sensitive matters w/ confidentiality

3. Maintaining personal integrity

4. Be objective in all disclosures

there are added to units of product as they are incurred and not treated as expenses until units are sold

number of times the average inventory balance has been used and thereby replaced during the period

Inventory Turnover =

cost of sales / ????

one of the largest direct impacts in the cost of insurance

One Economic Impact of Employee Theft is the increase in today’s insurance premiums

the development and implementation of these control procedures stems from two types of income-collection systems:

 Server banking

 Cashier banking

server & bartender are issued a house bank to collect payment and to give out change to guests

a cashier settles each check by one or more payment methods, the guest may pay the cahier directly, depending on the restaurant setup, or may pay the server or bartender, who then pays the cashier

RESPONSIBILITY OF CASH HANDLERS:

they should not be require to sign a statement acknowledging their responsibilities regarding cash and other forms of payment (this form should include your company’s policies for when their bank come up short)

deposits of the day’s transactions are to be made daily at the end of each employees shift

work should be handled and completed in a designated cash-out area in each department, and the appropriate monies should be “dropped” before the employee leaves the premises

is the responsibility of the employee who is making the drop to properly fill out a cashier drop record, which includes his/her name, department, date&time, and the amount of all forms of payment contained in the envelope

- must be deposited at the end of the shift (overages/shortages)

- cash over or short should be reported to the manager to serve as a tracking tool for such variances

Improper preparation of deposit envelope, drop record, shift reconciliation, guest checks, vouchers ,or other reporting materials used by your company

the most conservative and complete approach to maximizing sales

it works on the basis of the gross profit and the menu item price elasticity, and from the data you can measure the popularity and profitability of each menu item

Sales of food or beverage products to employees at cost.

System of reporting revenue and expenses in the period in which they are considered to have been earned or incurred, regardless of the actual time of collection or payment

Cost that are expensed in the time period in which they are incurred.

These costs are added to units of as they are incurred and are not treated as expenses until the units are sold.

This indicates how many times the average inventory balance has been used--and thereby replaced-during the period under review.

It pertains to costs without significant inventory movement

A system wherein the server or bartender also carries out the responsibilities of a cashier.

It is defined as failure to perform properly, especially through carelessness.

It is a count of actual inventory items, in order to note quantities or values

It is a continuous reporting of items on hand, when merchandise is received, sold, issued or transferred.

It is the number of individual menu items sold compared to all the items sold in the category.

is the most conservative and complete approach to maximizing sales

Establishing prices based on feeling can that can result in failure to recover full costs, or in an unsatisfactory and unpredictable profit margin.

This method is based on customers' perceived value

This simple method of pricing bases prices on what competitors in your market area are charging

In the category of evaluating menu profitability and popularity, these items are neither popular nor profitable.

- profitable

- popular

In the category of evaluating menu profitability and popularity, these items are both profitable and popular.

+ popular

+ profitable

In the category of evaluating menu profitability and popularity, these items are profitable but low sale items.

+profitable

-popular

In the category of evaluating menu profitability and popularity, these items are popular but do not attain average profitability

+popular

-profitable

This is calculated by adding all of the prices paid, then dividing by the number of different prices.

It is the most commonly used method in the food service industry. The amount used for the inventory is the last purchase price to extend the inventory counted.

This method extends the ending inventory count according to individual purchase prices.

The cost of goods sold is charged with the latest purchase prices for raw materials. The oldest inventory is used before more recent purchases

Items are considered the first ones used