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CHAPTER 1 - Coggle Diagram
CHAPTER 1
TYPES OF COSTS
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-when the sales volume increase,VC increase as well and vice versa.
3.CONTROLLABLE COST
-cost to be controllable when the amount of the cost incurred can be influenced by the action of a specified member(manager or supervisor) of an undertaking.
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FOUR IMPORTANT COST
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3.LABOR COST
The sum fo cost of employees,which includes salaries,wages and employee benefits.
4.OVERHEAD COST
Include all expenses that are neither food ,beverage nor labor.
PRIME COST
- sum of all food,beverage and labor costs.
- the greatest interest to most managers and owners.
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- Important role in determining profit and the success of an establishment.
COST CONCEPT
DEFINITION: 1.COST: The expenses to a foodservice business when the goods are consumed or the services are rendered .2.COST CONTROL:The process used by managers to regulate costs and guard excessive cost.
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HISTORICAL COST
DEFINITION: That can be found in business records,books of account,financial statements,invoices,employees time cards,and other similar records.
to establishing unit costs,determining menu prices and comparing present with pastlabor cost.
PLANNED COST
The most important functions of management and in order to plan effectively,managers use historial costs to develop planned costs.
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SALES CONCEPT
- Refer to the revenue generated from the exchange of products and services for value.
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