Monitoring food service operations ii daily food cost

Monitoring Food Service Operations II Daily Food Cost

Wednesday, April 12, 2023BAC-4131 Food and Beverage Management Cost Control: Monitoring Food Service

Operations -II Slide 1 / 26

Recap of the Previous session

• Describe the formula to find out the consumption of food per month.

• Explain the four methods of evaluating closing stock.

• Describe the nature of various adjustments.

• List the features of inventory segregation and count.



KCM of this session

1. Calculate food cost for any one day and for all the days to date in a period.

2. Calculate food cost percentage for any one day and for all the days to date in a period.

3. Prepare a daily report of food sales, food cost, and food cost percentage.

4. Determine book inventory value.

5. Explain the difference between book inventory and actual inventory



Scope

• Introduction.• Types of adjustments to Food Cost.• Calculating Daily Food Cost Cumulative

Basis.• Book versus actual inventory comparison.



Introduction

• Daily food cost figures are encouraged because:

1. Length of time.

2. Constant vigil over cost.

3. Cumulative data available for comparative.

4. Variance of any form can be investigated instantly.



Types of adjustments to Food Cost

• Positive adjustments: Which add up to the cost of food issued.

• Negative adjustments: Which are subtracted from the food issued.

• Positive adjustments:• Transfers from Bar to kitchen.• Liquor transfer from Bars.



Negative Adjustments

• Gratis to bars.• Promotion Expense.• Food to Bar(Directs)• Transfers to other units.• Grease sales.• Steward sales.• Cost of employee meals.



Determining Daily Food Cost

Cost of directs (from the Receiving Clerk ’ s Daily Report)+ Cost of stores+ Adjustments that increase daily cost (transfers from bar to kitchen; transfers from other units)— Adjustments that decrease daily cost (transfers from the kitchen to the bar: food to bar (directs), gratis to bar, steward sales, promotion expense)= Cost of food consumed— Cost of employee meals= Daily cost of food sold





Cost of food sold

• Cost of directs $ 218.75+ Cost of stores 944.55+ Adjustments that increase daily cost 90.00— Adjustments that decrease daily cost 70.35= Cost of food consumed 1,182.95— Cost of employee meals 99.65= Daily cost of food sold $1,083.30



Calculating Food Cost Percent

Food cost

————— x 100 = Food cost %

Food sales

$1,083.30

———— = .31608 x 100 = 31.608 %

$3,427.35



Calculating Daily Food Cost Cumulative Basis



Week to date comparative of Food Cost



Daily Cumulative Cost Record



Daily Cumulative Cost Record



Book versus actual inventory comparison

Opening inventory (closing inventory for the preceding month)

+ Purchases (total stores purchases for the period, as listed on receiving reports)

= Total available (total value of the stores

available for use during the period)

— Issues (total stores issues for the period, as listed on requisitions)

= Closing book value of the stores inventory



Book versus actual inventory comparison

• Theoretically the book value should be equal to the actual physical value ascertained.

• The difference is known as discrepancy.• Caused due to incorrect calculations.• Food Spoilage.• Theft.• Over issuing or under issuing.



Book Value Versus actual Value

• Opening Inventory $ 9,010.00+ Purchases $ 8,240.00— Issues $ 7,630.00= Book Value $ 9,620.00— Actual Value $ 9,120.00= Difference $ 500.00



Book Value and Actual Value

• The books value is also known as the book inventory is a complete set of closing set of balances purchases, issues based on records.

• The actual Value or Actual inventory where the value of consumption of food is based on physical counts of both balances.



Formula to calculate % difference

Difference between book value and actual value = % Total issues

500

———— = .0655 x 100 = 6.55%

7,630



Inventory Turnover

• Inventory turnover is defined as a way to measure how often a food inventory has been consumed and replenished during an accounting period.

• Inventory Turnover.• Rate of inventory turnover



Inventory Turnover

• Example• Opening Inventory: $ 2000.00• Closing Inventory: $ 3000.00• Food Cost: $ 4600.00• Total Inventory = Opening Inventory +

Closing inventory• Average Inventory = Total Inventory

2



Inventory Turnover

• Inventory Turnover = Food Cost

Average Inventory• Hence Total inventory= $ 5000 ($2000+

$3000)• Average Inventory = $ 2500 ( $ 5000/2)• Inventory Turnover= 1.84 ($ 4600/$2500)



Inventory Turnover

• If the rate of inventory turnover is 1.84 in a month then in a year it would be:

• 1.84 x 12 = 22.08



Questions&

CommentsWednesday, April 12, 2023

BAC-4131 Food and Beverage Management Cost Control: Monitoring Food Service Operations -II Slide 26 / 26

Date post:	12-May-2015
Category:	Education
Upload:	rajendra-nabar
View:	5,719 times
Download:	4 times

Monitoring food service operations ii daily food cost

Education