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UNITS AND RECIPE COSTING

UNITS AND RECIPE COSTING. OBJECTIVES. The student will be able to: Understand how to calculate unit cost Understand and use typical invoices Understand how to calculate the cost of a recipe Understand how to calculate portion cost. UNIT COST.

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UNITS AND RECIPE COSTING

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  1. UNITS AND RECIPE COSTING

  2. OBJECTIVES The student will be able to: • Understand how to calculate unit cost • Understand and use typical invoices • Understand how to calculate the cost of a recipe • Understand how to calculate portion cost

  3. UNIT COST • Unit: A specified quantity, usually refers to the number or amount in a package; may be expressed as weight, volume, dozen, case, each, and so on. • Unit Cost: The price paid to acquire one of the specified units. • A.P.(As purchased), the condition and amount of an item as it is purchased or received from the supplier.

  4. A.P. Cost = Cost per Unit Number of Units

  5. RECIPE COST • Recipe Cost: The total cost of all ingredients in a standardized recipe. The total recipe cost is calculated with the following two-step procedure: STEP 1: Determine the cost for the given quantity of each recipe ingredient using the unit costing procedures described previously.

  6. STEP 2: Add all of the ingredient costs together to obtain the total recipe cost. Total Recipe Cost = Cost per Portion Number of Portions

  7. LABOR COSTS • Direct Labor: refers to the work that is directly involved in the production of menu items. • Indirect Labor: the labor required to clean the parking lot, balance the cash register, taking inventory and so on. • Prime Cost: the expense for direct labor is added to food cost to arrive at a figure, which is the total cost of preparing a food item for sale.

  8. Direct Labor + Food Cost = Prime Cost

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