Term
| Budget is usually reviewed on a ___ basis. |
|
Definition
|
|
Term
|
Definition
| forecast of revenues, expenses, profits for a specific period of time |
|
|
Term
|
Definition
| labor, food, operating experiences |
|
|
Term
|
Definition
| shows inflow/o/p of cash; purpose to determine if funds will be available when needed |
|
|
Term
|
Definition
| plant facilities, equipment, cost of improvements/repairs (service/maintenance), expansions, replacements; includes expenditures whose returns are expected to last beyond one year |
|
|
Term
| methods to establish line items within budgets - traditional (incremental) |
|
Definition
| usually begins with this year's expenses plus an inflation factor |
|
|
Term
| methods to establish line items within budgets - zero-based budget (ZZB) |
|
Definition
| NOT this year's expenses plus an inflation factor. PPBS - planning, programming, budgeting system. begins at 0. must justify each expense. Past dollar allocations are NOT the basis of projections |
|
|
Term
| methods to establish line items within budgets - fixed budget |
|
Definition
| prepared at one level of sales or revenue (no expected major change in patient or customer count during the year) |
|
|
Term
| methods to establish line items within budgets - flexible budget |
|
Definition
| adjusted to various levels of operation with varying levels of sales/revenues throughout the year (changes in pt/customer count) i.e. closing a floor for renevation |
|
|
Term
| methods to establish line items within budgets - performance budget |
|
Definition
| details what it costs to perform an activity (how much to supervise the cafeteria) |
|
|
Term
|
Definition
| not affected by sales volume - rent, taxes, insurance |
|
|
Term
| direct, variable, flexible costs |
|
Definition
| varies directly with changes in sales - china, silver, food, uniforms, laundry, repairs, benefits |
|
|
Term
|
Definition
| both a fixed and variable cost - a portion of the cost will remain fixed despite changes in sales. labor, utilities |
|
|
Term
|
Definition
| already incurred and cannot be recouped by a new decision or alternative |
|
|
Term
|
Definition
| amount of increase or decrease in cost when you compare alternative choices i.e. cost difference between two delivery systems |
|
|
Term
| CPM - Critical Path Method |
|
Definition
| identifies the most critical activities to best allocate limited resources |
|
|
Term
|
Definition
| most readily controlled item, subject to greatest inflation |
|
|
Term
| How to determine edible portion (EP) cost per pound |
|
Definition
| raw purchase cost (AP) divided by cooked, edible portion. |
|
|
Term
| Operating costs are usually ___% of the budget. |
|
Definition
| 12-18%. i.e. utilities, laundry, cleaning |
|
|
Term
| Accounting methods - cash basis |
|
Definition
| recognizes a transaction at the time the cash is taken in or released |
|
|
Term
| Accounting methods - accrual basis |
|
Definition
| recognizes revenues when earned and expenses when incurred (regardless of when actual cash received/dispensed) |
|
|
Term
|
Definition
| summary of all expenses and revenues for the month by category |
|
|
Term
| Profit/loss statement (income statement) |
|
Definition
| shows operating results over a period of time |
|
|
Term
|
Definition
| shows financial condition as of a particular date. Lists assets (goods/products owned), cash, inventory, accounts receivable; lists liabilities minus amounts owed; assets = liabilities + capital (equity) |
|
|
Term
|
Definition
| ability to meet short term debt |
|
|
Term
| What 2 things show current effectiveness of inventory control? |
|
Definition
| asset management and turnover ratios |
|
|
Term
|
Definition
| cost of sales (food cost) / avg inventory cost |
|
|
Term
| An inventory turnover rate of ___ a month is often preferable. |
|
Definition
|
|
Term
|
Definition
| ability to meet long term debt |
|
|
Term
|
Definition
| tells you what percent of the income was spent on the food sold. daily food cost/daily income = food cost percentage |
|
|
Term
|
Definition
| food cost per month / # meals per month |
|
|
Term
|
Definition
| food purchases plus foods removed from inventory OR begining inventory minus ending inventory plus food purchases |
|
|
Term
|
Definition
| number of meals produced / number of hours worked |
|
|
Term
|
Definition
| reflects the portion of sales volume remaining after paying all expenses |
|
|
Term
| The most commonly used assessment of overall financial efficiency |
|
Definition
|
|
Term
|
Definition
| Cost of the raw food and bev sold |
|
|
Term
|
Definition
| profit shown after deducting raw food and bev from sales |
|
|
Term
|
Definition
| profit shown after ALL expenses have been deducted from sales |
|
|
Term
|
Definition
| determines the length of time it will take for the cash inflows from a project to equal the initial cash outlay (payoff time) |
|
|
Term
|
Definition
| a process of investigating all aspects of a service with the goal of discovering and eliminating unnecessary costs without interfering with effectiveness of the service. |
|
|
Term
| Value analysis in food service |
|
Definition
| The relationship between the price paid for an item and its usefulness |
|
|
Term
| What is used in evaluating existing product specifications? |
|
Definition
|
|
