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Monitoring food service operations III-Actual V/S standard Costs,[object Object],BAC-4131 Food and Beverage Management Cost Control::Monitoring food service operations III Actual V/S Standard costs,[object Object],Slide 1 /18 ,[object Object],Thursday, April 14, 2011,[object Object]
Recap of Daily food cost,[object Object],Define actual inventory value.,[object Object],Define book inventory value.,[object Object],Food cost percent today.,[object Object],Food cost percent to date.,[object Object],Gratis to bar.,[object Object],Promotion expense.,[object Object],Transfers from Bar to kitchen.,[object Object],BAC-4131 Food and Beverage Management Cost Control::Monitoring food service operations III Actual V/S Standard costs,[object Object],Slide 2 /18 ,[object Object],Thursday, April 14, 2011,[object Object]
KCM of the Session,[object Object],Define standard cost and explain how it is calculated.,[object Object],List three ways an undesirable forecasted food cost percentage could be changed.,[object Object],Define potential savings and list several conditions that affect it.,[object Object],Distinguish between daily and periodic calculation of standard cost and potential savings.,[object Object],BAC-4131 Food and Beverage Management Cost Control::Monitoring food service operations III Actual V/S Standard costs,[object Object],Slide 3 /18 ,[object Object],Thursday, April 14, 2011,[object Object]
Scope,[object Object],Comparing actual costs and standard costs.,[object Object],Menu Pre-Cost and Abstract.,[object Object],Comparing forecasted sales & cost  with actual sales and cost.,[object Object],Comparing Actual with Standard Food Costs, Food Sales, and Potential Savings.,[object Object],Example.,[object Object],BAC-4131 Food and Beverage Management Cost Control::Monitoring food service operations III Actual V/S Standard costs,[object Object],Slide 4 /18 ,[object Object],Thursday, April 14, 2011,[object Object]
Comparing actual costs and standard costs,[object Object],In general, there are two methods for comparing actual and standard costs.,[object Object],Daily method of calculating actual costs and comparing it with standard costs.,[object Object],Offers immediate results.,[object Object],Time consuming.,[object Object],Results are accurate.,[object Object],BAC-4131 Food and Beverage Management Cost Control::Monitoring food service operations III Actual V/S Standard costs,[object Object],Slide 5 /18 ,[object Object],Thursday, April 14, 2011,[object Object]
Comparing actual costs and standard costs,[object Object],Periodic Method of calculating actual cost with standard costs.,[object Object],Less time consuming than the daily method.,[object Object],Information not available readily.,[object Object],Corrective action cannot be taken immediately because the expense has been made.,[object Object],BAC-4131 Food and Beverage Management Cost Control::Monitoring food service operations III Actual V/S Standard costs,[object Object],Slide 6 /18 ,[object Object],Thursday, April 14, 2011,[object Object]
Menu Pre-Cost and Abstract,[object Object],BAC-4131 Food and Beverage Management Cost Control::Monitoring food service operations III Actual V/S Standard costs,[object Object],Slide 7 /18 ,[object Object],Thursday, April 14, 2011,[object Object]
Menu Pre-Cost and Abstract,[object Object],The pre-cost abstract is a sheet based on the standard cost.,[object Object],It contains sales on one side and the food cost percentage in the other column.,[object Object],It may also be referred to as the daily food cost  percentage.,[object Object],Another column is usually added which is known as forecast.,[object Object],BAC-4131 Food and Beverage Management Cost Control::Monitoring food service operations III Actual V/S Standard costs,[object Object],Slide 8 /18 ,[object Object],Thursday, April 14, 2011,[object Object]
	Menu Pre-Cost and Abstract with Forecast,[object Object],The forecast is of sales.,[object Object],The approximated sales are supported by an equivalent projection of cost and its percentage.,[object Object],BAC-4131 Food and Beverage Management Cost Control::Monitoring food service operations III Actual V/S Standard costs,[object Object],Slide 9 /18 ,[object Object],Thursday, April 14, 2011,[object Object]
Volume Forecast and sales Forecast,[object Object],A projection of the sales volume ,[object Object],In Terms of Units as forecast,[object Object],Compared with actual units sold.,[object Object],Difference or variance to projection.,[object Object],The volume forecast is multiplied with the cost price and later the sales price which becomes sales forecast.,[object Object],The Sales forecast is compared with actual sales to get a forecast variance,[object Object],BAC-4131 Food and Beverage Management Cost Control::Monitoring food service operations III Actual V/S Standard costs,[object Object],Slide 10 /18 ,[object Object],Thursday, April 14, 2011,[object Object]
Monitoring food service operations iii actual & std costs
Actual and Standard Food Costs, Food Sales, and Potential Savings,[object Object],BAC-4131 Food and Beverage Management Cost Control::Monitoring food service operations III Actual V/S Standard costs,[object Object],Slide 12 /18 ,[object Object],Thursday, April 14, 2011,[object Object]
Example,[object Object],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:,[object Object],BAC-4131 Food and Beverage Management Cost Control::Monitoring food service operations III Actual V/S Standard costs,[object Object],Slide 13 /18 ,[object Object],Thursday, April 14, 2011,[object Object]
Example,[object Object],BAC-4131 Food and Beverage Management Cost Control::Monitoring food service operations III Actual V/S Standard costs,[object Object],Slide 14 /18 ,[object Object],Thursday, April 14, 2011,[object Object]
Example,[object Object],Food sales for March totaled $ 50, 028.50,[object Object],Using the following information provided, calculate the total standard cost for the period.,[object Object],In the next page are the figures from the accounting records of the Red Lobster ,[object Object],BAC-4131 Food and Beverage Management Cost Control::Monitoring food service operations III Actual V/S Standard costs,[object Object],Slide 15 /18 ,[object Object],Thursday, April 14, 2011,[object Object]
Example,[object Object],Opening Inventory		$   7414.80,[object Object],Closing Inventory			$   6327.35,[object Object],Food Purchases			$ 17642.80,[object Object],Transfers Beverage to Food	$     443.00,[object Object],Transfers food to Beverage	$     837.00,[object Object],Calculate the cost of food sold for the month.,[object Object],Using the information from the previous question calculate each of the following:,[object Object],BAC-4131 Food and Beverage Management Cost Control::Monitoring food service operations III Actual V/S Standard costs,[object Object],Slide 16 /18 ,[object Object],Thursday, April 14, 2011,[object Object]
Example,[object Object],Actual cost percent.,[object Object],Standard cost percent.,[object Object],Potential savings in dollars.,[object Object],Potential savings as percentage of sales.,[object Object],BAC-4131 Food and Beverage Management Cost Control::Monitoring food service operations III Actual V/S Standard costs,[object Object],Slide 17 /18 ,[object Object],Thursday, April 14, 2011,[object Object]
Questions,[object Object],&,[object Object],Comments,[object Object],BAC-4131 Food and Beverage Management Cost Control::Monitoring food service operations III Actual V/S Standard costs,[object Object],Slide 18 /18 ,[object Object],Thursday, April 14, 2011,[object Object]

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