Principles of Food, Beverage, and Labor Cost Controls
Chapter One
Cost and Sales Concepts
* Learning Objectives
After reading this chapter, you should be able to:
1. Define the terms cost and sales.
2. Define and provide an example of the following types of costs:
fixed, directly variable, semivariable, controllable, noncontrollable,
unit, total, prime, historical, and planned.
3. Provide several examples illustrating monetary and nonmonetary
sales concepts.
4. Describe the significance of cost-to-sales relationships and
identify several cost-to-sales ratios important in food and beverage
management.
5. Identify the formulas used to compute the following: cost percent,
sales price, maximum allowable cost per person.
6. Describe factors that cause industry-wide variations in cost
percentages.
7. Explain the value of comparing current cost-to-sales ratios with
those for previous periods.
* Introduction
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