Determining The Overall Standard Food Costs Essay

Determining The Overall Standard Food Costs Essay

Length: 1881 words (5.4 double-spaced pages)

Rating: Better Essays

Open Document

Essay Preview

It is one the main things when opening a restaurant is pricing the menu correctly. Controlling the portion is better for cost control. Most mistakes that might be made is during the creation of the list. To determine the overall standard food costs there are a lot of things that have to come to mind. The actual food costs is everything that is connected to producing all the menu items sold over a given period of time. Your cost to serve a meal includes both overhead costs and the actual food on the plate. Miscalculating either is a recipe for disaster. The first step is to list the ingredients of the dish you are evaluating. It even matter to include even the smallest amounts of food. For example, like a squirt of ketchup or spoonful of mayonnaise as well as cooking oil. It is important that every dish should be portioned to make sure that each chef is serving the same meal at the same cost. The second step includes calculating the cost of each ingredient in each dish. The third step is adding the total cost followed by dividing the menu price by the food cost to determine the percentage of the price that comes from food. Next is determining the overhead cost to run the restaurant and dividing that by the number of customers that might be served that day. What also comes to play is the contribution margin. The contribution margin is calculated by subtracting food costs from the revenue. Food percentages are also a part of the overall standard food costs. It is calculated by dividing the food cost by food revenue. It is ideal to compare the estimated food cost with the actual food cost. So what it should be to what it actually is. If it starts to show that the actual food cost is bigger than what was predicted then the managers wi...


... middle of paper ...


...ery first step to take in giving the customers amazing dining experiences that meet or exceed their expectations. The planning is what keeps the restaurant organized. It depends on the operation. The main reason for production planning is to know how much of the menu items to prepare. Past sales determine the estimate of what to use in the next few days, weeks, or months. Production planning is a plan for the future production, in which the places figure out what is needed. Those who are production planning have to determine the required product mix and factory load to satisfy those customers needs. They also have to match the required level of production to the existing resources. It is unwise to overuse resources that might be wasted. That is where scheduling and choosing the actual work comes into play. When it is schedule, that is where manufacturing can happen.

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Costs and Benefits of Foreign Direct Investment Essay

- Introduction Over the years, foreign direct investment (FDI) has become a popular way for countries to move capital flows from one country to the other. Basically, foreign direct investment simply refers to an instant when a business entity for a particular country invests in an income generating asset in another country with a hope of return on the investment. Foreign direct investment has its benefits to the foreign investor, the home country and the host country (Froot 1993, 60). However, it should be noted that the benefits that come about as a result of FDI can only be possible if all the three parties follow the right regulations and the ethical ways of doing business is strictly adhe...   [tags: country, investment, regulations, development]

Better Essays
1167 words (3.3 pages)

An Online Human Service Provider Essay

- Moving forward with the implementation requires a commitment of both time and resources form VLP, both of which come at a premium for a non-profit organization in a period of growth and change. UniteUs estimates that it would take approximately three months to build out VLP’s organizational specific database. The decision to utilize UniteUs represents a tremendous commitment to the database. Historically, there has been an organizational attitude to ignore sound data methodology. Faced with the fact that foundations no longer desire qualitative reports of outcomes as in the past, in the form of a consumer narrative; they are demanding quantitative data and social return on investment clearly...   [tags: Costs, Price, Economics, Variable cost]

Better Essays
885 words (2.5 pages)

Standard Cost And Cost Costs Essay

- Standard costing Even considering the fact that standard costing can create variances between standard cost and actual cost, this system is the most commonly used costing system in all around the world. Standard costing provides easier to predict the cost and understand the cost, and also easier in decision making as well. Standard costing also required less time consuming for the management to record and maintain the system. Standard costing is the system that organized cost for activities and the record to decide the cause for any variances....   [tags: Cost accounting, Cost, Variance, Costs]

Better Essays
935 words (2.7 pages)

Real Estate Investment Strategy Essay

- In order to get the best return on investment for a distressed real estate purchase one must consider many factors. These details include but are not limited to, the current and future state of the housing market for a given area, the cost of construction and related services, the median rental, lease or sale prices, the property taxes, the title cost and insurance, as well as any legal implications of the purchase and subsequent sale, lease or rental. Most importantly one must pose the question, “What is it that I hope to achieve from investing in a distressed property?” Provided the sum of $150,000 I would choose to invest in the Las Vegas housing market, because it is where I currently r...   [tags: Property Search, Costs]

Better Essays
751 words (2.1 pages)

Essay on Financial Benefits and Overall Costs of Green Buildings

- There have been uncertainties concerning green buildings. What are green buildings. , What effects do they have. , What do they mean financially. ,These are some of the questions that need answers. The Green Building Council of South Africa describes a green building as “a building which is energy efficient, resource efficient and environmentally responsible-which incorporates design, construction and operational practices that significantly reduce or eliminate its negative impacts on the environment and its occupants” (GBCSA, 2013)....   [tags: construction, waste, green building]

Better Essays
943 words (2.7 pages)

Overall Healthcare and Economics Essay

- Overall Healthcare and Economics: Health care costs have continued to increase in the past few decades despite of the numerous health reform initiatives. Currently, these expenditures account for more than 18 percent of GDP in the United States, a percentage that is expected to continue rising significantly. Actually, it’s projected that the share will rise to 34 percent of GDP by 2040 if health care costs continue to increase at historical rates. The increased health care costs have considerable impacts on households, insurance companies, and government budgets....   [tags: increased healthcare costs and policies]

Better Essays
1299 words (3.7 pages)

Essay about Variance Between Standard Costing And Actual Costing

- Why the variance occurs Variance analysis refers to calculating the variance between budgeting and actual performance. Variance can divide into favorable variance and adverse variance (Matz and Curry, 1972). Use these variance data to find the reasons why these variances occurred, rectifying production activities, and then control the cost. The following answers examine what reasons may result the variance between standard costing and actual costing in question case. 1. Sales variance Sales volume variance is the variance between the standard and actual volume multiplied by the standard margin....   [tags: Cost accounting, Cost, Costs]

Better Essays
1817 words (5.2 pages)

Essay on The Overall Fear Of Crime Of Males And Females

- In this assignment, we were asked to analyze the data provided to us by a questionnaire, this data was based on the overall fear of crime of males and females. The dependent variable of the data was the overall fear of crime. The overall fear of crime was the dependent variable because it was the variable being measured. The overall fear rate was determined by the responses the male and female participants gave. The overall fear rate of each participant made it possible to calculate the mean, median, mode, range, variance, and standard deviation giving us an idea of this data sets distribution....   [tags: Standard deviation, Arithmetic mean, Mean]

Better Essays
754 words (2.2 pages)

Essay about The Overall Fear Of Crime Of Males And Females

- In this assignment we were asked to analyze the data provided to us by a questionnaire, this data was based on the overall fear of crime of males and females. The dependent variable of the data was the overall fear of crime. The overall fear of crime was the dependent variable because it was the variable being measured. The overall fear rate was determined by the responses the male and female participants gave. The overall fear rate of each participant made it possible to calculate of the mean, median, mode, range, variance, and standard deviation giving us an idea of this data sets distribution....   [tags: Standard deviation, Arithmetic mean, Mean]

Better Essays
741 words (2.1 pages)

Essay on Costs

- Costs Estimation Generally Accepted Accounting Practice The main purpose of searching for a new method to estimate cost if due to the erroneous practices of accounting. There is a wide recognition of this problem but most companies still have not gone to a different approach. The GAAP principles do not provide the kind of cost detail and information focus required in today’s capital intensive, automated, and complex manufacturing and distribution. It generates an erroneous and inverse relationship between computed product cost and current production volume....   [tags: essays papers]

Better Essays
1217 words (3.5 pages)