Author Question: Pour cost is an important financial figure used for controlling costs. What is it? What is meant by ... (Read 114 times)

K@

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Pour cost is an important financial figure used for controlling costs. What is it? What is meant by making sense of pour cost ?
 
  What will be an ideal response?

Question 2

Sufficient cash must be available to meet current expenses. What should be done with remaining cash?
 
  A) It should be in a bank, to generate interest
  B) Stored in a safe in the back of the restaurant
  C) It should be invested in a mutual fund to make money



jgranad15

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Answer to Question 1

Knowing cost percentages is only reading half of a story; more information is needed in order to make informed financial decisions. The trending rise or fall of pour cost percentage from previous terms is more important than simply knowing the actual percentage itself. A pour cost of 16 could be cause for elation or alarm depending on its relationship to previous performance. One of the challenges with pour cost is deciding what to compare it against in order to know if percentages are in line. Managers should compare their ACTUAL cost percentages to their DESIRED (or optimal) cost percentages. One other solution is to simply look at the average industry pour costs or at previous annual cost percentages.

Answer to Question 2

A



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