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. More »

To calculate the food cost for a restaurant, divide the total amount of money spent on food by the amount of income earned by the restaurant. Food combined with labor costs should total no more than 65 percent of costs f... More »

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Restaurants, caterers and other foodservice businesses use a standard food cost formula to determine their profit margin on food sales. A profitable restaurant normally has a food-cost percentage of anywhere from 28 to 3... More »

To calculate inventory turnover, divide the cost of goods sold by average inventory for the quarter or for the year. Use this information to determine if inventory turnover supports the number of quarterly or yearly sale... More »

According to Investopedia, the cost of sales formula is used by adding the amount of purchases to an existing inventory, then subtracting the remaining amount of inventory at the end of a sales period. The resulting amou... More »

Prorated amounts are calculated by dividing the cost of a service by the number of days in the service period, according to Lucas Hall from Landlordology. The resulting number is then multiplied by the number of days the... More »

Depreciation expenses are calculated by dividing the cost of an asset by the number of years a company expects to own it, explains CPA Mike Piper for The Oblivious Investor. Straight-line depreciation calculates the depr... More »

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