Blog

Prime costs in a restaurant include its food, beverage and labor costs.

An operation’s total revenue minus its cost of sales equals the operation’s gross profit.

A manager’s restaurant uses paper napkins. What type of “Other expense” is the amount paid for the napkins?

A manager estimates that 2,000 guests will be served next week. The manager’s operation serves 2.5 guests per labor dollar expended. What will be the manager’s estimated cost of labor next week?

When an operation increases it sales, its cost of variable labor

An operation’s payroll includes its wages, salaries and benefit costs.

What is the financial information that is listed last on a P&L prepared using the USAR?

When expressed as a percentage of sales, a mixed expense will decrease as sales increases.

What is an example of a mixed other expense in a foodservice operation?

A manager pays $5,000 per month plus 2% of total monthly sales to the owner of the building that houses the manager’s restaurant. How much will the manager have to pay to the building’s owner in a month in which the total sales for the restaurant are $80,000?