Research Paper
Villaflor, Louise Janica B. BDICAM
COST AND SALES RELATIONSHIP
1. Discuss briefly the cost and sales relationship.
When it comes to business, it all comes down to price. If a person price a product too high, that person won’t sell it. If a person price a product too low, that person will lose money. In order to find the proper equilibrium, one will need to bear in mind the relationship of costs and sales volume and incorporate that into the pricing strategy. Therefore, cost, sales volume and profitability all play roles in a company’s selection of the best possible pricing strategy.
2. What are the factors that influence the cost in a restaurant business? There are many factors in a restaurant business that can influence different costs such as: salaries, food ingredients, beverages, equipments and its maintenance, linen services, cleaning, rent, food wastage, and so on and so forth. These factors that influence the cost can also affect the costs of production and the supply of products that have a significant role in making a restaurant operation profitable. Moreover, policies made by the government administration to influence the consumers, other competitors or divert consumers to domestic products for instance can also have an impact in costing as well as the rise and fall of the economy to weather develop the business or turn the other way around.
3. As Manager of the kitchen, how can you control cost? Keeping track of the past sales in order to envision the future of sales could be one of the many ways and most efficient to control cost. History records of seasonal activity may produce a better image of future seasonal activities in order to determine the correct amount of food and beverages. Seeing that over-purchasing is one of the most costly in a restaurant business; it leads to more waste, spoilage and over-portioning that cause a restaurant to breakdown. Thus, financial statements, inventory lists, purchasing and history of sales
COST AND SALES RELATIONSHIP
1. Discuss briefly the cost and sales relationship.
When it comes to business, it all comes down to price. If a person price a product too high, that person won’t sell it. If a person price a product too low, that person will lose money. In order to find the proper equilibrium, one will need to bear in mind the relationship of costs and sales volume and incorporate that into the pricing strategy. Therefore, cost, sales volume and profitability all play roles in a company’s selection of the best possible pricing strategy.
2. What are the factors that influence the cost in a restaurant business? There are many factors in a restaurant business that can influence different costs such as: salaries, food ingredients, beverages, equipments and its maintenance, linen services, cleaning, rent, food wastage, and so on and so forth. These factors that influence the cost can also affect the costs of production and the supply of products that have a significant role in making a restaurant operation profitable. Moreover, policies made by the government administration to influence the consumers, other competitors or divert consumers to domestic products for instance can also have an impact in costing as well as the rise and fall of the economy to weather develop the business or turn the other way around.
3. As Manager of the kitchen, how can you control cost? Keeping track of the past sales in order to envision the future of sales could be one of the many ways and most efficient to control cost. History records of seasonal activity may produce a better image of future seasonal activities in order to determine the correct amount of food and beverages. Seeing that over-purchasing is one of the most costly in a restaurant business; it leads to more waste, spoilage and over-portioning that cause a restaurant to breakdown. Thus, financial statements, inventory lists, purchasing and history of sales