HTM 2030 Chapter Notes - Chapter 10: Weighted Arithmetic Mean, Package Pilferage, Gross Profit

• School: University of Guelph
• Department: Hospitality and Tourism Management
• Course: HTM 2030
• Professor: William Murray

Document Summary

In order to set standards in a foodservice environment, management must consciously consider the proper level to adopt: achievable standards are those that are realistically within reach. Variances: the mathematical derivations between the standard and actual costs. Profit when actual < or = standard. Comparing actual and standard costs: method #1: calculations of standard costs and actual costs for the day and for all the days thus far in the operating period. Costs to date vs the last one: method #2: periodic determination of standard costs from records of actual portion sales in the period. Daily comparison: if standard costs and selling prices are established and forecasts have been made, it is possible to determine in advance what food cost % should be. Forecast section focuses on sales forecast prepared sometime before a day or meal. Abstract section is completed after the day or service for which the forecast was prepared.