1. Financial Management
Budget = financial plan used to forecast needs, allocate resources, and track progress
set goals and objectives
record what is accomplished
evaluate progress
take corrective action quickly
Based on past experience or industry-wide data

2. Kinds of Budgets Operating: day-to-day guide
for statistics, estimate volume indicators
expense
revenue
Capital = long-term planning
equipment
renovation
construction
Master = overall coordinating budget

3. Types of budgets
fixed
flexible
zero-based
cash

4. Budget Planning Evaluation of past performance and likely changes
Preparation: Forecast, draft
List all sources of income and projected amounts
List all expenses
food, labor, overhead, operating expenses
Add other volume indicators
Justify requests for new funds
Justification: review, revise
Implementation: use it!
Control: ongoing monitoring

5. Types of Records/Reports
Purchasing and receiving
Storage and inventory
Food production
Operating and maintenance

6. Types of Records/Reports
Service records
use categories as needed
schools
hospitals
commercial enterprises
Cash transactions
Personnel records

7. Important Calculations (N321)
Per portion food costs
food AP; food EP
Selling price
Raw-food cost method
Demand-oriented pricing
Prime-cost pricing
Competitive pricing
Inventory turnover rate

8. Important Calculations
Daily Food Cost Report
Profit and Loss Statement
Break-even point (BEP)