The Function of Cost Control

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The Function of Cost Control
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Why is it important?
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Types of Control

• Importance of Cost Control
• Sales - Cost Profit
• Cost Control as a Management Function
• Cost-Volume-Profit Relationship
• Fixed
• Variable

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• Contribution Margin
• Profit FC
• CM ----------------------
• Sales
• Variable Rate
• Variable Costs
• Variable Rate ----------------------
• Sales
• Traditional Control Theory
• Prime Costs FCLC
• Behavioristic Approach to Control

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• Costs
• Absentee Ownership or Management
• Relationship with Quality Control
• Cost-Benefit Relationships
• Uncontrollable Costs
• Managerial Concern
• Percentage Systems
• Financial Control

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Statement of Purpose

• Elements of Successful FS
• Maintaining Control of Production
• Systems that are followed
• Inventory and production schedules
• High Quality of Food
• Taste, ingredients, portion sizes, preparation
  methods
• Must have standards that are followed
  consistently
• High Customer Satisfaction
• Routine operational audits
• Guest interaction with staff
• Comment cards
• Exit interviews
• Mystery shopper reports
• Focus groups
• High Employee Satisfaction