Title: Calculate food cost.
Course: Catering/Banquet Specialization (16052-IV) > Section: Using Business and Mathematics Skills

Calculation results in a food-cost percentage based on overall inventory. Calculation should include

- using the formula: food cost ÷ food sales = food-cost percentage
- explaining why costing out an operation’s menu is the only way to calculate ideal food cost (i.e., the target cost of food in an operation).

Process/Skill Questions:

Thinking

- What are the benefits of knowing food costs?
- What are the benefits of knowing food sales?
- What is the importance of standardization to food cost?

Communication

- How does food loss or waste contribute to food cost?
- What is cost control? Why is it important to a food service business?

Leadership

- Who determines food costs and tracks foods sales?
- What leadership skills are needed to determine ideal food cost?

Management

- How can technology help keep track of food sales and food costs?
- What is the effect of inventory accuracy on food cost?