Title: Explain the components of a profit-and-loss statement.
Course: Catering/Banquet Specialization (16052-IV) > Section: Using Business and Mathematics Skills

Explanation should include

- sales vs. inventory
- waste
- overhead costs
- fixed costs
- variable costs
- labor costs
- food costs.

Process/Skill Questions:

Thinking

- What are the components of a profit-and-loss statement?
- How does a profit-and-loss statement affect a facility?

Communication

- How can a profit-and-loss statement be used to determine purchasing needs?
- How is profit or loss determined?

Leadership

- Why is an inventory log necessary for a facility?
- Who controls fixed and variable costs?

Management

- Who maintains an inventory log?
- Who is in charge of the profit-and-loss statement?
- Why are variable costs highly indicative of management performance?
- Why is cost control so important to a chef’s job?