waste and comps

waste and comps - Non-sale reductions to inventory Waste...

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Non-sale reductions to inventory Waste Discounts Comps Errors in Production and Receiving Theft
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Burger cost 1.60 menu price 5.95 FC% 26.8% Sell 10 burgers Revenue Cost Waste 2 burgers 59.50 16.00 0 3.20 Total 59.50 19.20 FC% 32.26%
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Sell 50 burgers and waste 2 Revenue Cost FC% 50 x 5.95 = 297.50 52 x 1.60 = 83.20 27.96% This principle applies to anything that reduces inventory without creating the appropriate income Comps Discounts Errors in production
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Discount Example With 50% discount cost 1.80 cost 1.80 price 6.00 price 3.00 FC% 30% FC 60% Adjustment for FC% add to sales the amount discounted or subtract the cost from purchases In the example add $3.00 to sales or subtract $ .90 from purchases
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Comps cost 1.80 sales 6.00 FC % 30% cost 1.80 sales 0.00 FC% 100% To calculate sales for FC%, add in the $6.00
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Standardized recipes and portion control are necessary to maintain cost. Direct sale of inventory Subtract from inventory COGS = 800 - direct sale - 10 Adj COGS 790 COGS / Sales = FC% The larger the COGS, The larger the FC% 800/2400 = 33.33% 790/2400 = 32.91%
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Income from direct sales? What do you do with the $$$$ ?
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This note was uploaded on 09/23/2011 for the course HRAD 3353 taught by Professor Staff during the Fall '11 term at Oklahoma State.

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waste and comps - Non-sale reductions to inventory Waste...

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