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L-2.2 Ch. 9 Food Costing (N)

Horizontales
Menu ingredients that have been accurately portioned prior to service; preportioning items before serving is another mechanism for ensuring that portions are the right size.
The relationship between sales and the cost of the food that went into those sales. Food cost percentage can be analyzed by comparing it to company standards, historical costs, or even industry standards. In most cases, the standard food cost percentage is a target determined by management.
Method of determining the value of closing inventory in which the number of units of each item is multiplied by the most recent price paid for the item. This method is one of the quickest ways to determine inventory.
The inventory at the end of a given period.
The food product in storage, which can be expressed in terms of units, dollar values, or both.
Verticales
Method of determining the value of closing inventory in which the number of units of each item is multiplied by the price actually paid for each unit. This method is more accurate than the latest purchase price, as it takes into account price changes over the period; however, it is more time consuming to track the price changes.
A table of ingredient costs for each item in a standardized recipe that is a tool used to calculate the standard portion cost for a menu item. Recipe cost cards are a key control in getting the proper relationship between a menu item’s cost and selling price; there should be a recipe cost card for every multiple-ingredient item listed on the menu.
The physical inventory at the beginning of a given period.
The number of each item in the restaurant.