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

To fix the selling price: The selling price is fixed in Restaurants, keeping in view the food cost. More the luxury restaurant, low is the food cost and vice versa.

Cost controlling: The Chef/ Restaurant manager/Cost accountant while fixing the selling price of a dish must know its exact recipe. He must also keep in mind the labour cost, the overheads while fixing the food cost and its variance.

Preparation of account and control of food cost: The organization will regularly review the production, sales and operating results, stocks o raw material and finished food and other items are valued at cost price or market price, whichever is lower. After ascertaining the stocks and taking a note o costs and sales, he is able to control the food cost.

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