HTF 201 Lecture Notes - Lecture 1: Cost Accounting, Shortage, Income Statement
Document Summary
Controlling & evaluating process: establish standards and standard procedures for operation, train all individuals to follow established standards and standard procedures, monitor performance and compare actual performance with established standards, take appropriate action to correct deviations from standards. Restaurants have beverage, food, labor (all employee wages and benefits) and prime costs (the sum of food costs, beverage costs and labor costs). Fixed costs are unaffected by changes in sales volume. Variable costs are related to business volume, every increase and decrease in cost. Semi-variable (mixed) costs are both fixed and variable elements e. g. waiters, stewards job hours depend on the busyness of the restaurant.