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CHAPTER 1 - Coggle Diagram
CHAPTER 1
TYPES OF COSTS
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NON - CONTROLLABLE COSTS
Cost which cannot be influenced by the action of a specified member of an undertaking are known as uncontrollable costs.
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PRIME COSTS
Sum of all food, beverage and labor costs.
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HISTORICAL COSTS
The purposes are to establishing unit costs, determining menu prices and comparing present with past labor cost.
PLANNED COSTS
The most important functions of management and in order to plan effectively, managers use historical costs to develop planned costs.
4 IMPORTANT COSTS
FOOD COST
The expense to a business for food, imcurred when food is consumed
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LABOR COST
It is the sum of cost of employees necessary to run the business, which includes salries, wages and employee benefits.
OVERHEAD COST
Include all expenses that are neither food, beverage nor labor.
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