Monitoring food service operations iii actual & std costs
18
Monitoring food service operations III-Actual V/S standard Costs 5/27/22 BAC-4131 Food and Beverage Management Cost Control::Monitoring food service operations III Actual V/S Standard costs Slide 1 /18
-
Upload
rajendra-nabar -
Category
Education
-
view
4.130 -
download
0
Transcript of Monitoring food service operations iii actual & std costs
Monitoring food service operations III-Actual V/S standard Costs
Tuesday, April 11, 2023BAC-4131 Food and Beverage Management Cost Control::Monitoring food service
operations III Actual V/S Standard costs Slide 1 /18
Recap of Daily food cost
• Define actual inventory value.• Define book inventory value.• Food cost percent today.• Food cost percent to date.• Gratis to bar.• Promotion expense.• Transfers from Bar to kitchen.
Tuesday, April 11, 2023BAC-4131 Food and Beverage Management Cost Control::Monitoring food service
operations III Actual V/S Standard costs Slide 2 /18
KCM of the Session
1. Define standard cost and explain how it is calculated.
2. List three ways an undesirable forecasted food cost percentage could be changed.
3. Define potential savings and list several conditions that affect it.
4. Distinguish between daily and periodic calculation of standard cost and potential savings.
Tuesday, April 11, 2023BAC-4131 Food and Beverage Management Cost Control::Monitoring food service
operations III Actual V/S Standard costs Slide 3 /18
Scope
• Comparing actual costs and standard costs.
• Menu Pre-Cost and Abstract.• Comparing forecasted sales & cost with
actual sales and cost.• Comparing Actual with Standard Food
Costs, Food Sales, and Potential Savings.• Example.
Tuesday, April 11, 2023BAC-4131 Food and Beverage Management Cost Control::Monitoring food service
operations III Actual V/S Standard costs Slide 4 /18
Comparing actual costs and standard costs
• In general, there are two methods for comparing actual and standard costs.
• Daily method of calculating actual costs and comparing it with standard costs.
• Offers immediate results.• Time consuming.• Results are accurate.
Tuesday, April 11, 2023BAC-4131 Food and Beverage Management Cost Control::Monitoring food service
operations III Actual V/S Standard costs Slide 5 /18
Comparing actual costs and standard costs
• Periodic Method of calculating actual cost with standard costs.
• Less time consuming than the daily method.
• Information not available readily.• Corrective action cannot be taken
immediately because the expense has been made.
Tuesday, April 11, 2023BAC-4131 Food and Beverage Management Cost Control::Monitoring food service
operations III Actual V/S Standard costs Slide 6 /18
Menu Pre-Cost and Abstract
Tuesday, April 11, 2023BAC-4131 Food and Beverage Management Cost Control::Monitoring food service
operations III Actual V/S Standard costs Slide 7 /18
Menu Pre-Cost and Abstract
• The pre-cost abstract is a sheet based on the standard cost.
• It contains sales on one side and the food cost percentage in the other column.
• It may also be referred to as the daily food cost percentage.
• Another column is usually added which is known as forecast.
Tuesday, April 11, 2023BAC-4131 Food and Beverage Management Cost Control::Monitoring food service
operations III Actual V/S Standard costs Slide 8 /18
Menu Pre-Cost and Abstract with Forecast
• The forecast is of sales.• The approximated sales are supported by
an equivalent projection of cost and its percentage.
Tuesday, April 11, 2023BAC-4131 Food and Beverage Management Cost Control::Monitoring food service
operations III Actual V/S Standard costs Slide 9 /18
Volume Forecast and sales Forecast
• A projection of the sales volume • In Terms of Units as forecast• Compared with actual units sold.• Difference or variance to projection.• The volume forecast is multiplied with the
cost price and later the sales price which becomes sales forecast.
• The Sales forecast is compared with actual sales to get a forecast variance
Tuesday, April 11, 2023BAC-4131 Food and Beverage Management Cost Control::Monitoring food service
operations III Actual V/S Standard costs Slide 10 /18
Actual and Standard Food Costs, Food Sales, and Potential Savings
Tuesday, April 11, 2023BAC-4131 Food and Beverage Management Cost Control::Monitoring food service
operations III Actual V/S Standard costs Slide 12 /18
Example
• Luvin the owner of Red Lobster Inn has developed a new menu for the use of his establishment. Each menu item represents a complete meal. He has calculated standard cost of each item and has kept careful records of sales for the month of March as shown below:
Tuesday, April 11, 2023BAC-4131 Food and Beverage Management Cost Control::Monitoring food service
operations III Actual V/S Standard costs Slide 13 /18
Example
Item Name Number soldStandard Portion
Cost
Golden Fried Jumbo Prawns 310 $5.50
Lobster Thermidor 270 $7.80
Calamari Thai Kingdom 540 $3.80
Moules Marniere 425 $5.25
Lobster Newberg 175 $8.70
Escagots Bourgogne 340 $6.50
Coquilles St Jacques 510 $570
Filet de Sole Orly 480 $420
Tuesday, April 11, 2023BAC-4131 Food and Beverage Management Cost Control::Monitoring food service
operations III Actual V/S Standard costs Slide 14 /18
Example
• Food sales for March totaled $ 50, 028.50• Using the following information provided,
calculate the total standard cost for the period.
• In the next page are the figures from the accounting records of the Red Lobster
Tuesday, April 11, 2023BAC-4131 Food and Beverage Management Cost Control::Monitoring food service
operations III Actual V/S Standard costs Slide 15 /18
Example
Opening Inventory $ 7414.80
Closing Inventory $ 6327.35
Food Purchases $ 17642.80
Transfers Beverage to Food $ 443.00
Transfers food to Beverage$ 837.00
a. Calculate the cost of food sold for the month.
b. Using the information from the previous question calculate each of the following:
Tuesday, April 11, 2023BAC-4131 Food and Beverage Management Cost Control::Monitoring food service
operations III Actual V/S Standard costs Slide 16 /18
Example
1. Actual cost percent.
2. Standard cost percent.
3. Potential savings in dollars.
4. Potential savings as percentage of sales.
Tuesday, April 11, 2023BAC-4131 Food and Beverage Management Cost Control::Monitoring food service
operations III Actual V/S Standard costs Slide 17 /18
Questions&
CommentsTuesday, April 11, 2023
BAC-4131 Food and Beverage Management Cost Control::Monitoring food service operations III Actual V/S Standard costs Slide 18 /18
