Explain the objective of food cost accounting.

1.	Explain the objective of food cost accounting.
Answer» Objective of food cost accounting are: 1.To know cost: It is through the mechanism of cost accounting that costs of products or services are ascertained. 2.To fix the selling price: only if one knows the total cost than one can fix the selling price of a dish. 3. Cost controlling: The chef/Restaurant manager/ cost accountant while fixing the selling price of a dish must know its exact recipe. 4. Preparation of account and control of food cost- The Restaurant manager/ cost accountant review the production ,sales and operating results ,stocks of raw material and finished food and other items are valued at cost price or market price which ever is lower. 5.Operating polices: It helps management in formulating operating policies like what should be the food cost, whether to bake bakery products in house or out source.

Answer»

Objective of food cost accounting are:

1.To know cost: It is through the mechanism of cost accounting that costs of products or services are ascertained.

2.To fix the selling price: only if one knows the total cost than one can fix the selling price of a dish.

3. Cost controlling: The chef/Restaurant manager/ cost accountant while fixing the selling price of a dish must know its exact recipe.

4. Preparation of account and control of food cost- The Restaurant manager/ cost accountant review the production ,sales and operating results ,stocks of raw material and finished food and other items are valued at cost price or market price which ever is lower.

5.Operating polices: It helps management in formulating operating policies like what should be the food cost, whether to bake bakery products in house or out source.

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