Calculations and Formulas

How many teaspoons are in a tablespoon?

3

How many tablespoons in 1/4 cup

4

How many cups in a pint?

2

How many pints in a quart

2

how many quarts in a gallon

4

scoop #s refer to the # of schoops per

quart

scoop volume =

32 / scoop size

scoop size =

32 / scoop volume

#10 can = ______ quarts

3

How many #10 cans in a case

6

#2 can = ____ oz

20

top-down budget

prepared by upper management and given to operating units

activity-based budgeting is a type of ____________ budgeting

top-down

bottom-up budgeting

each unit prepares a budget that is sent to upper management

baseline budget

starts with previous budget and adjusts for current conditions

zero-based budget

determines cost, outlay, and inflows without a baseline budget.

A manager has to justify every expense with what budget

zero-based budget

which budget does not change does not based on business variations

fixed budget

flexible budget

changes with business activity because budget is constructed with a rate per unit

incremental budget

uses existing budget numbers as a base and adds incremental amounts relative to the current budget

assets-to-liabilities ratio

% assets / debt

debt-to-equity ratio

% assets funded by shareholders equity and debt

inventory turnover rate

assesses if there is efficient use of assets

profitability ratios

ability to generate excess income relative to sales

solvency ratio

ability to meet long-term debts

liquidity ratio

ability to meet short-term debts

activity ratio

ability to transfer non-cash assets to cash assets

current ratio

current assests/current liabilities

current ratio is

an organization's ability to meet current financial obligations

net profit

gross profit - expenses

total assets

Everything a company owns

current assets

liquid assets or those easily converted to cash

accounts receivable is an example of

current assets

CC payments and pending payments are examples of accounts (receivable/payable)

receivable

accounts payable

money the company owes to suppliers

accumulated depreciation

total depreciation of an asset over time

current liabilities

includes accounts payable and accrued expenses that must be paid within a year

owner's equity

monetary value of property beyond debts including retained earnings

retained earnings

income set aside by company instead of being distributed to shareholders

gross profit =

revenue - COGS

operating costs

expenses

cost-benefit analysis

estimates total monetary value of benefits that will be derived from a project and compares it to the cost of a project

value analysis

systematic assessment of every feature of a product to ensure its cost is no greater than is require to achieve its function

value-added

when a business adds something extra to a generic product that gives a greater perception of value

break-even point

when expense and revenue are equal

total costs =

fixed costs + variable costs

BP (units) =

fixed cost / selling price - variable cost

BP ($) =

fixed cost / (1 - variable cost/selling price)

FTE = ________ week = _________ day

40, 8

monthly food cost =

opening inventory + purchases - closing inventory

cost per meal =

total cost / # of meals

3 main types of forecasting

qualitative techniques, time series and projection, and causal models

make or buy decision

deciding between producing an item in-house or buying it externally

COGS =

opening inventory + (purchases + labor) - closing inventory

the difference between COGS and monthly food costs is that COGS includes ________ and monthly food cost does not

labor

gross profit shows

how efficient a company manages its labor and supplies

If opening inventory increases, COGS (increases/decreases), and profit (increases/decreases)

increases, decreases

If ending inventory increases, COGS (increases/decreases), and profit (increases/decreases)

decreases, increases

depreciation =

cost - salvage value / years of usable life

AP quantity

the amount of the product as purchased by the vendor

EP quantity

the amount of the product AFTER we prepared it

yield is

the difference between AP and EP

yield = AP/ EP

AP cost

amount paid for the AP quantity

AP cost per unit =

total AP cost / AP quantity

EP cost

cost of the portion served

EP cost per unit =

AP cost per unit / yield

EP cost =

total AP cost / yield

selling price =

Cost to make per unit / food cost (decimal)

selling price (prime cost) =

markup factor x prime cost

prime cost =

raw food cost + labor cost

markup factor =

1 / food cost

markup factor (with labor)

1 / food cost + labor cost

popularity index =

units sold / total units sold

unit price profit =

selling price - food cost

profit =

item profit x units sold

% profit contribution =

unit item profit / total profit

food cost % =

food cost / selling price

turnover =

# customers served /# of seats

inventory turnover rate =

food cost / average inventory cost

reorder point =

safety stock + average sales x lead time