Cost Control and Purchasing Assignment Details, Week 1 Discussion Forum 1 help

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Part 1: Primary Response

Within the Discussion Forum area, write 100 – 150 words that respond to the following questions with your thoughts, ideas, and comments. This will be the foundation for future discussions by your classmates. Be substantive and clear, and use examples to reinforce your ideas.

Congratulations! You have been hired as the new KM (kitchen manager) of a local restaurant. Since you interviewed and were hired, food cost has continued to rise, and the restaurant has continued to receive poor scores on its standard operating procedure reports. The restaurant is not utilizing standardized recipes, so inconsistency with the food production is a major problem.

Food cost is the actual dollar value of the food used by an operation during a certain period. Food cost is sometimes referred to as cost of sales, or cost of goods sold. It includes fruit, vegetables, dairy, protein (meat, fish, poultry), and other categories of food expenses. However, it should be noted that cost of sales includes two types of costs: food cost and beverage cost. Therefore, food cost and cost of sales cannot be used interchangeably if an operation has beverage sales


Choice 2

Please answer the following questions:

  • Describe the key components for calculating basic food costs.
  • Identify several factors that would add or subtract from an operation’s food cost and how they are accounted for.
  • Identify 3 inventory controls that would be needed to help prevent loss and/or theft.

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