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Solution for McGraw-Hill's Taxation of Individuals and Business Entities 7th Edition Chapter 3, Problem 1

by Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie W
758 Solutions 19 Chapters 34348 Studied ISBN: 9781259334870 Taxation 5 (1)

Chapter 3, Problem Discussion_Questions 1 : 1. Discuss the connection between standardized recipes and...

1. Discuss the connection between standardized recipes and standardized portion costs.

Step-By-Step Solution

1. Students should understand how standardized recipes control portion size and thus costs.

As discussed in Chapter 2, each and every menu item should have a Recipe or Plate Card and, as such, a corresponding portion cost. As soon as employees start to take liberties in interpreting the quantities of ingredients to use or in procedures, actual recipe yields will be affected, and portion costs will not be accurate. If portion costs are not accurate, then menu selling prices are probably not adequate to cover expenses and produce profit.

A further repercussion is in the purchasing area. Products are ordered based on standard portions sizes and controlled production. If ingredients are not measured accurately or food is not portioned correctly, there is a risk of either running out of a product or throwing out the product because it was not used. Losing product or sales for either of these reasons is not acceptable.

 

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