as purchased (AP) weight
The gross weight.
average cover
The average amount spent by a customer in a meal period or month.
baker’s percentage
A formula that states the ingredients in relation to the amount of flour.
breakeven point
The point at which cost and revenue are equal.
Physical assets or money used in the production of goods and services.
closing inventory
The amount of product on hand at the end of the inventory period.
contribution margin
Portion of sales that can be applied against fixed costs; gross sales minus variable costs.
1. Number of items in stock
2. Number of items in a case or to the pound or kilogram
Products purchased and used as soon as they arrive or on the same day.
edible product (EP) weight
The amount of usable product after cleaning or portioning.
Calculating the total value of goods on hand after taking a physical inventory.
First in, first out; a system of managing inventory so that the product received first gets used first.
fixed cost
Costs which do not change based on the volume of business.
food cost
The direct cost of food.
Total goods in stock at any one time.
A document indicating the amount owed for goods or services.
labour cost
The cost of labour required for a fixed period of time; usually reflected as a percentage of sales
menu engineering
1. To maximize profitability by encouraging customers to buy what you want them to buy
2. Structuring of a menu to balance low- and high-profit items to achieve overall target food costs and profit
opening inventory
The amount of product on hand at the start of the inventory period.
The ongoing expenses required to operate a business that are not direct costs of producing goods or services.
par stock
Maximum amount of an item that should be in stock at any one time.
perpetual inventory
A system of tracking product as it is received and used, thereby keeping a running total of items on hand
physical inventory
A physical inventory requires that all items in storage be counted periodically.
point-of-sale (POS) system
A computerized system that coordinates customer purchases, sales, and costs through various linked terminals in a business.
portion cost
The cost of a single portion.
A measure of the amount of work done in a fixed period.
Any revenue left over after all costs have been covered.
The amount of profit a business generates compared to sales, usually reflected in a percentage.
purchase order
A document indicating the approval of a quantity of goods ordered from a supplier.
The proportion between two amounts, usually with one item being referred to as 1.
The individual responsible for accepting and checking deliveries.
To rearrange inventory so that the oldest product is placed in front of newly acquired product.
Total revenue received for goods or services in a fixed period.
specific gravity
The density of a substance (mass for a given volume), when compared against a reference substance, such as water.
Purchase criteria such as size, grade, packaging, market form.
standardized recipe
Consistent, tested recipe that is used by everyone in the kitchen to prepare the same product.
Goods taken from the storage area and used.
1. Number of times in a period that inventory is turned into revenue.
2. Number of times in a day that a seat is filled.
1. Quantity of product or business.
2. A type of measurement that measures the space taken up by a substance.
Amount of usable product.
yield test
A test to determine the net or edible product (EP) weight from the gross or as purchased (AP) weight.


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Basic Kitchen and Food Service Management Copyright © 2015 by The BC Cook Articulation Committee is licensed under a Creative Commons Attribution 4.0 International License, except where otherwise noted.

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