Author Question: Describe why and how managers create recipe cost cards. What will be an ideal ... (Read 54 times)

mp14 · **on:** Aug 10, 2018

Describe why and how managers create recipe cost cards.

What will be an ideal response?

Question 2

Identify internal and external factors that impact the purchasing process.

What will be an ideal response?

stallen · **Reply #1 on:** Aug 10, 2018

Answer to Question 1

Managers create recipe cost cards to understand the costs for each menu item. They create a recipe cost card by listing each ingredient and its associated cost for a given recipe, then dividing by the total number of portions to determine the per portion cost. Managers must understand as purchased (AP) and edible portion (EP) units, sometimes translating between the two, when arriving at recipe costs.

Answer to Question 2

Purchasers must consider the skills and abilities of employees when buying decisions are made. They must ensure the operation can pay for products and services on a timely basis and that quality standards will be met. The use of decentralized or centralized purchasing affects the flow of information throughout the operation, and use of technology impacts the process as well.

External factors that impact purchasing decisions relate to customers, distribution channels, global trade conditions, governmental regulations, environmental concerns, and competitors.