2. They combine all the different expenses incurred by an establishment as a result of selling an item or offering a service to guests. Is the value of the ingredients to make up a dish

3. Expenses directly linked to the business volume Are those costs that increase or decrease in direct proportion to the volume of business Salaries Direct operating expenses Food and drink sold

4. Expenses which are normally unaffected by change in sales volume Are costs that are not variables that remain stable regardless of the volume of business Music and entertainment Marketing Interest rate

5. Expenses which have both fixed and variable elements. The cost of the manpower for example, show both, characteristics variables an unvaribles

6. Expenses which can be changed in the short term and which are usually under the direct responsibility of the F&B Manager. Hiring Downsizing

7. Expenses that Management cannot change in the short term and which usually do not fall under the responsibility of the F&B Manager.

8. The sum of food cost, beverage cost and labour cost for a given operating period. It is expressed in % of the total revenue. (raw material) (beverage) (labor cost or manpower) % TOTAL REVENUE

9. The amount resulting from the subtraction of variable costs from the total income and which is available to cover the fixed costs and make a profit. Expressed in % of the income, it is called contribution rate. The amount resulting A profit express in % (CONTRIBUTION RATE)

10. ItemRestaurant I%Restaurant II% Total income1'316'000.-100%650'000.-100% Food cost468'990.-35%180'142.- Beverage cost123'210.-31'108.- Salaries, fixed430'400.-180'300.- Salaries, variable96'000.-47'200.- Other fixed costs133'600.-77'000.- Other variable costs40'060.-59'750.- Fill in the two % columns. Calculate for both restaurants, using the appropriate figures: 1.the gross profit 2.the gross profit % 3.the total variable costs 4.the total fixed costs 5.the prime cost 6.the contribution margin 7.the contribution rate

11. 1.When comparing the results of both restaurants, what comments can you make? 2. Over which expenses should the F&B Manager’s attention be particularly drawn? 3.On which expenses should the F&B Controller concentrate?