Explain the components of a profit-and-loss statement.
Explanation should include
- sales vs. inventory
- waste
- overhead costs
- fixed costs
- variable costs
- labor costs
- food costs
- return on investment (ROI).
Process/Skill Questions:
Thinking
- What are the components of a profit-and-loss statement?
- How does a profit-and-loss statement affect a facility?
Communication
- How is profit or loss determined?
Leadership
- Why is an inventory log necessary?
- Who controls fixed and variable costs?
Management
- Who maintains an inventory log?
- Who oversees the profit-and-loss statement?
- Why are variable costs highly indicative of management performance?
- Why is cost control so important to a chef’s job?