Q:
# How do you calculate food cost percentage?

A:
### Quick Answer

**StarChefs explains that food cost percentage is figured by taking the total beginning inventory cost plus purchases minus the ending inventory costs; then dividing that number by food sales.**

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Nick Nguyen
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Food cost percentage is generally figured on a weekly basis. If the formula returns an answer of 50 percent, then the restaurant spends 50 cents to purchase food for every dollar earned in sales. Restaurants can use a free online calculator to calculate food cost percentages. These calculators can break down the food cost per recipe or menu item. An acceptable percentage depends on the type of meal, such as breakfast, lunch or dinner, and the amount of additional expenses the restaurant must cover, such as overhead.

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Q:
## What is the inventory turnover ratio?

A:

Full Answer >**The inventory turnover ratio is a formula that displays how many times inventory is replaced over a period of time by dividing cost of goods sold over average inventory.**This ratio is used to identify the efficiency of inventory management within a company.Filed Under: -
Q:
## What is the difference between gross cost and net cost?

A:Accounting Tools from CPA Steven Bragg indicates that the gross cost of an item is the sum total of all costs involved in making or acquiring it. In contrast, the net cost is the gross cost minus financial gains derived from the production or acquisition of the item.

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Q:
## What is the formula for total fixed cost?

A:

Full Answer >**The formula for total fixed cost is fixed costs plus variable costs multiplied by quantity equals total cost, or FC +VC(Q)=TC, according to Education Portal.**Fixed costs are costs that do not change based on aspects such as production levels, where variable costs change based on production.Filed Under: -
Q:
## How do you calculate basis points?

A:A basis point is 1/100 of a percentage point, which means that multiplying the percentage by 100 will give the number of basis points, according to Duke University. Because a percentage point is already a number out of 100, a basis point is the part per 10,000, which is 100 multiplied by 100.

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