Glossary
- 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.
- capital
- 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.
- count
- 1. Number of items in stock
2. Number of items in a case or to the pound or kilogram - directs
- 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.
- extending
- Calculating the total value of goods on hand after taking a physical inventory.
- FIFO
- 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.
- inventory
- Total goods in stock at any one time.
- invoice
- 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.
- overhead
- 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.
- productivity
- A measure of the amount of work done in a fixed period.
- profit
- Any revenue left over after all costs have been covered.
- profitability
- 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.
- ratio
- The proportion between two amounts, usually with one item being referred to as 1.
- receiver
- The individual responsible for accepting and checking deliveries.
- rotate
- To rearrange inventory so that the oldest product is placed in front of newly acquired product.
- sales
- 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.
- specifications
- 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.
- stores
- Goods taken from the storage area and used.
- turnover
- 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. - volume
- 1. Quantity of product or business.
2. A type of measurement that measures the space taken up by a substance. - yield
- 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.
