Explain why standard, composite and actual food costs may vary ...

[Kikoku]

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]

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