« previous next »

Author Question: Explain why standard, composite and actual food costs may vary and how these variances can assist ... (Read 42 times)

Kikoku

  • Hero Member
  • *****
  • Posts: 540
on: Aug 10, 2018
Explain why standard, composite and actual food costs may vary and how these variances can assist restaurant management.
 
  What will be an ideal response?

Question 2

Latisha wants to purchase a new grill. The grill willcost 8,000 . Latisha estimates she will increaseprofits by 2,000 per year by allowing her chef toexpand the number of menu items available.
 
  Whatis the payback period for this proposed investment? a. One year
  b. Two years
  c. Four years
  d. Six years


katkat_flores

  • Sr. Member
  • ****
  • Posts: 328
Reply #1 on: Aug 10, 2018
Answer to Question 1

Standard food cost is set by management (or corporate. and is used as a benchmark. Composite food cost is calculated from the product mix. Actual food cost is calculated as part of the income statement. Variances between these cost percentages can help management know where to examine operations in order to resolve problems.

Answer to Question 2

C


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Persons who overdose with cardiac glycosides have a better chance of overall survival if they can survive the first 24 hours after the overdose.

Did you know?

Throughout history, plants containing cardiac steroids have been used as heart drugs and as poisons (e.g., in arrows used in combat), emetics, and diuretics.

Did you know?

The lipid bilayer is made of phospholipids. They are arranged in a double layer because one of their ends is attracted to water while the other is repelled by water.

Did you know?

In most climates, 8 to 10 glasses of water per day is recommended for adults. The best indicator for adequate fluid intake is frequent, clear urination.

Did you know?

Inotropic therapy does not have a role in the treatment of most heart failure patients. These drugs can make patients feel and function better but usually do not lengthen the predicted length of their lives.

Basic Food Group Choices for a 1,200 Calorie Eating Plan Basic Food Group Choices for a 1,200 Calorie Eating Plan
Downward Spiral of Poverty and Hunger Lack of food can lead to numerous other symptoms Downward Spiral of Poverty and Hunger Lack of food can lead to numerous other symptoms
Reducing Pesticides in Food Reducing Pesticides in Food
Immune Response to a Food Allergen Immune Response to a Food Allergen
Should Parents Make Their Own Baby Food? Should Parents Make Their Own Baby Food?
Food Web in Aquatic Biome Food Web in Aquatic Biome
Video: Knee Animation

For a complete list of videos, visit our video library