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Solution for McGraw-Hill's Taxation of Individuals and Business Entities 7th Edition Chapter 9, Problem 1

by Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie W
758 Solutions 19 Chapters 34342 Studied ISBN: 9781259334870 Taxation 5 (1)

Chapter 9, Problem Discussion_Questions 1 : 1. Explain the following statement: ―At the heart...

1. Explain the following statement: ―At the heart of earning a profit in a foodservice operation is the ability of the manager to control food cost.‖

 

Step-By-Step Solution

1. We are approaching the point at which dining room sales will be generated. Product has been ordered, received, stored and inventoried. Now, it is up to the manager and chef to control what happens on the preparation side of things. Without control on the preparation side, food cost will be out of control. This expense represents a significant part of the sales dollars. Any fluctuation from the standard in food cost will have to be made up in some other way. If all expenses run to standard, an out of control food cost problem can only be fixed by using profit.

 

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