1.Food costing is important to know as it has a direct effect on the profitability of a restaurant. It is the cost of your ingredients and does not include other costs, such as labor and overheads. It is essential in determining whether food costing targets are being met.
2.Factors affecting costs of production
Labour productivity. New technology which improves output per worker enables the firm to cut back on employing workers, leading to lower costs. Raw materials. A rise in the cost of raw materials, e.g. oil, plastic, and metal – will increase the cost of firms.
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Answer:
1.Food costing is important to know as it has a direct effect on the profitability of a restaurant. It is the cost of your ingredients and does not include other costs, such as labor and overheads. It is essential in determining whether food costing targets are being met.
2.Factors affecting costs of production
Labour productivity. New technology which improves output per worker enables the firm to cut back on employing workers, leading to lower costs. Raw materials. A rise in the cost of raw materials, e.g. oil, plastic, and metal – will increase the cost of firms.