DIET 4415 Study Guide - Final Guide: Fixed Asset, Income Statement, Fixed Cost
Document Summary
Income statement: statement which shows the results of operating a business over a period of time: profit & loss statement, shows that your net profit consists of revenue and expenses over a period of time. Equations: (2 x straight-line depreciation rate x book value at the beginning of the year) = depreciation for that double declining depreciation (rate x total cost) **see calculation worksheet: understand and be able to calculate food cost %, food cost % = cost of food / food sales. Labor cost % = cost of labor / food sales: purchases method to calculate food cost, purchases for specific period of time / food sales, total purchases / # of meals served. Inventory method: (beginning inventory + food purchases) = total food available (total food available - closing inventory) = cost of food: most frequently used, calculate pre-costing an item. (price/serving) Ap price/lb x ap wt (lbs) = total cost.
