ProStart Level 2 Chapter 8 – Stocks, Soups & Sauces Fundamentals Review
Revenue - ✔✔the income from sales before expenses, or costs, are subtracted
Costs - ✔✔The expenses you incur to purchase, prepare, and serve your products
Cost control - ✔✔A business's efforts to manage how much it spends.
4 main cost categories - ✔✔1. product or food costs
2. beverage costs
3. labor costs
4. overhead costs
Controllable costs - ✔✔incurred only when a meal or service is provided: food, beverages, and
labor
Fixed/noncontrollable costs - ✔✔do not change: overhead costs
Examples of overhead costs - ✔✔utilities, mortgage/lease, insurance
Labor costs - ✔✔costs of all staff from wages to benefits
Operating budget - ✔✔a financial plan for a specific period of time, usually one year broken
down into months
Depreciation - ✔✔a loss of value over time
Revenue - ✔✔the income from sales before expenses, or costs, are subtracted
Costs - ✔✔The expenses you incur to purchase, prepare, and serve your products
Cost control - ✔✔A business's efforts to manage how much it spends.
4 main cost categories - ✔✔1. product or food costs
2. beverage costs
3. labor costs
4. overhead costs
Controllable costs - ✔✔incurred only when a meal or service is provided: food, beverages, and
labor
Fixed/noncontrollable costs - ✔✔do not change: overhead costs
Examples of overhead costs - ✔✔utilities, mortgage/lease, insurance
Labor costs - ✔✔costs of all staff from wages to benefits
Operating budget - ✔✔a financial plan for a specific period of time, usually one year broken
down into months
Depreciation - ✔✔a loss of value over time
