| A | B |
|---|
| Profit Pricing | Ensures that profit requirements and non-food expenses are factored into pricing decisions. |
| Portion Cost | Indicates the cost incurred by preparing one portion of the menu item according to its standard recipe. |
| Standard Food Cost | The ideal food cost that managers should expect when a menu item is prepared according to its standard recipe. |
| Standard Recipe | A formula for producing a food or beverage item specifying ingredients, the required quantity of each ingredient, preparation procedures, portion size, and portioning equipment and garnishes. |
| Standard Recipe File | Contains recipes for all menu items. |
| Ingredient File | Contains information on each purchased ingredient such as ingredient code number, description, purchase unit, issued unit, and recipe unit cost. |
| Elasticity of demand | A term economists use to describe how demand respond to price changes. |
| Contribution Margin | Menu item selling price minus the item's standard food cost. |
| Chaining Recipes | Including sub-recipes as ingredients for standard recipe. |
| Budgeted Food Cost Percent | A tool used in the profit pricing method. Determined by dividing allowable food cost by forecasted food sales. |
| Allowable Food Cost | A budgeted food cost determined by subtracting non-food expenses and profit requirements from forecasted selling price. |
| Dinner Cost | The standard food cost for items combined to form dinners or other meals that are priced and sold as one menu selection. |
