Own cost

Own cost

Revision History

Abstract

TfmMenuItemsInputPrices

The Menu item own cost is the total purchase price of the stock items needed to prepare a given set of menu items. Own cost can therefore only be calculated for menu items that belong to the Stock item class. When these menu items are sold, their associated stock items are deducted from the store via sales records.

The menu item own cost depends on the stock item purchase prices of the associated stock items. Therefore, the dish own cost depends on both the total purchase price of the stock items used to prepare this dish and the relationship between the quantities of these stock items and the resulting dish.

Equation 4.1. 

Own cost (unit, menu) = Purchase price (stock item)*Quantity(stock item)/Quantity(menu)

Recalculation of the menu item own cost is carried out using the stock on hand that has been registered in the stores of the selected store group within the selected period. The time interval used for recalculation of the stock item purchase price is specified in the Store groups directory.

Information about menu item own cost either by store group or by menu item can be found in Own cost reports. These reports display two different prices:

  • Own cost per portion is the own cost for one portion of the menu item. This is the total purchase price of the stock items required to make one portion of the menu item.

  • Own cost per quantity unit is the own cost for one unit of measure of the menu item. This is the total purchase price of the stock items required to make one unit of measure of the menu item.

The Own cost operational report viewing window can be opened either for selected store groups or for selected menu items in all store groups. These options are represented by two commands in the Own cost menu: