CHAPTER 9 FOOD
COSTING
Chapter
Activity Guide
9
ACTIVITY 9.1 DEFINITIONS
Directions
Complete the following definitions for the key terms.
Key Term Definition
Inventory Inventory is the food product in storage and can be expressed in terms of units, dollar
values,
Opening inventory Opening inventory is the physical inventory at the beginning of a given period
Closing inventory The closing inventory is the inventory at the end of a given period
Reproducible for instructional use only by permission of the National Restaurant Association Educational Foundation.
Not for individual sale. © 2017 National Restaurant Association Educational Foundation. All rights reserved. The
National Restaurant Association logo is a registered trademark of the National Restaurant Association.
CHAPTER 9 FOOD
COSTING
ACTIVITY 9.1 DEFINITIONS (continued)
Key Term Definition
Total food cost percentage Total food cost percentage is the relationship between sales and the cost of the food
that went into those sales.
A key control in getting the proper relationship between a menu item’s cost and its
Recipe cost card
selling price is the recipe cost card
Preportioned items Preportioned items are menu ingredients that have been accurately portioned prior to
service.
Physical inventory Taking physical inventory means counting and recording the number of each item in the
restaurant.
Latest purchase price actual purchase cost or price,
Actual purchase price Actual purchase price
Multiply number of units—each item by price paid
Reproducible for instructional use only by permission of the National Restaurant Association Educational Foundation.
Not for individual sale. © 2017 National Restaurant Association Educational Foundation. All rights reserved. The
National Restaurant Association logo is a registered trademark of the National Restaurant Association.
CHAPTER 9 FOOD
COSTING
More accurate method
Time consuming
Reproducible for instructional use only by permission of the National Restaurant Association Educational Foundation.
Not for individual sale. © 2017 National Restaurant Association Educational Foundation. All rights reserved. The
National Restaurant Association logo is a registered trademark of the National Restaurant Association.
