Lesson 2 : Cost and Sales Concept

Controllable and Non-controllable Costs

1. Cost may also labelled controllable and non-controllable.
2. Controllable cost are those cost that can be changed in the short -term .eg .variable cost
3. Non-controllable costs are those cannot normally be changed in the short-term fixed costs.

Unit and Total Costs

1. Unit costs may be food and beverages portions.Examples : one steak or one martini,or unit of work,as in hourly rate for employee.
2. Total costs represent all the cost of the food served in one portion.
3. Total costs and unit costs are affected in different ways as illustrated by the following diagram.

Tag : Cost Concepts, Cost and Sales Concept, Introduction to food and beverages control