Beginning inventory - The total value of products on hand at the beginning of the accounting period for which food cost is being calculated., Corrective actions - Steps that should be taken by a manager as soon as the cause for a variance is identified., Ending inventory - The total value of products on hand at the end of the accounting period for which food cost is being calculated., Food product waste - A measurement of how much food product is purchased and taken from inventory, but not actually sold., Historical costs - The costs that have been incurred in the past., Labor cost - The cost of payroll plus all other labor-related costs, including FICA, employer-paid health insurance premiums, vacation pay, sick leave, and so on., Line item review - To check every item on the budget against actual figures, and to note any differences., Payroll cost - The amount of money that is spent for employee wages, both fixed and variable., Step cost - A fixed cost that increases to a new level in step with significant changes in activity or usage., Shrinkage - Product spoilage, product waste, or theft of inventory., Stock rotation - The practice of ensuring that products in storage the longest are used first., Write-off - A recorded reduction in the stated value of inventory., Labor cost percentage - Labor cost divided by sales.,

Chapter 7

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