ARTICLES

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.

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...

www.reference.com/article/calculate-food-cost-restaurant-e422c5fdccb42c88

Calculate actual food cost by determining consumption over a given period of time, and then divide by total food sales over the same period. To do this, the value of the establishment's inventory must be assessed at the ...

www.reference.com/article/calculate-food-costs-74c8f7e0d11f70d1

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SIMILAR ARTICLES

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...

www.reference.com/article/calculate-inventory-turnover-88e359a80a0fb535

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...

www.reference.com/article/use-cost-sales-formula-8a3725975cf30cb7

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...