Professional Documents
Culture Documents
Planning and Control for Food and Beverage Operations Seventh Edition (464TXT or 464CIN)
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5. Identify adjustments used to calculate a monthly net cost of sales for food and beverages. 6. Describe daily calculations of actual food and beverage costs, and explain how the daily beverage cost percentage worksheet can be used to assess a bartenders performance. 7. Describe how current technology helps managers monitor food and beverage costs.
2009, Educational Institute 2
Cost of Sales
Actual costs incurred to produce all food and beverage items sold during an accounting period
Cost of Sales = beginning inventory + purchases ending inventory
Inventory ValuationFIFO
Earliest product costs are applied to products issued from storage Most recent product costs are applied to products left in inventory Tends to create a higher total inventory value because the more recently purchased products with typically higher costs remain in inventory
Inventory ValuationLIFO
Most recent product costs are applied to products issued from storage Earliest product costs are applied to products left in inventory Tends to create a lower total inventory value because most recent costs are first issued and most recent costs are typically higher than products purchased in the past
2009, Educational Institute 7
Food Transfers
From kitchen to barfruits, garnishes, food Transfers used to generate beverage revenue Transfer memo serves as source document Decrease cost of food sales Increase cost of beverage sales
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Beverage Transfers
From bar to kitchencooking liqueurs and tableside desserts Transfers used to generate food revenue Transfer memo serves as source document Decrease cost of beverage sales Increase cost of food sales
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