Title: Identify factors that contribute to profit and loss.
Course: Culinary Arts II (16052-II) > Section: Using Business and Mathematics Skills

Identification should include

- sources of income, including food and beverage sales
- operating expenses, including food and beverage costs, supplies, rent, mortgage, insurance, employee salaries and wages, employee benefits, marketing and advertising, and utility costs
- business environment (e.g., tariffs, supply chain).

Process/Skill Questions:

Thinking

- What are some ways that food loss occurs?
- Why are accurate cost percentages important in determining the success of the business operation?
- What are fixed costs and variable costs?

Communication

- How do training and standardization contribute to profits?
- Why is it important to maintain a loyal customer base?
- What does the term loss percentage mean?

Leadership

- Why is portion control important to profit and loss?
- How does the level of waste affect the bottom line?
- What are typical food, beverage, and labor cost goals?
- How does a regular review of the profit and loss statement benefit the company?

Management

- How do safety and risk-management training affect insurance premiums?
- Why are forecasting and budgeting important?
- How are food and beverage cost percentages determined?
- How are total sales broken down?