Food costing and control: a vital aspect of hospitality industry business
O.U Alex- Onyeocha, Lynda A. Anyanwu, Amos Opoola,Samuel T Ajoku, Yakubu Faith E and Christian C. Maduakolam
Research Paper I Published August,2015
Pearl Journal of Management, Social Science and Humanities Vol. 1 (4), pp. 60-68
ABSTRACT
Hospitality industry is one of the business entities that
budgeting must be functional and active. The method of it
application or execution matters; it will be of good note to
know that for effective hospitality operation and growth the
food costing and control system should be extraordinary. In
this study, the researchers were able to point out the basic
element that facilitates the growth of business in the
hospitality industry through the proper use of food costing
and control, so it can be said that operational cost can be
seen as the cost of starting a new business or the cost of
investment in the business. Operational cost is the very
cost managed by the general manager or the manager in charge
of the activities in the industry and it contributes to the
growth in the business and the hotel welfare or well-being.
Operational cost consist importantly of selling price, which
is the actual cost of food, including the accumulated cost
for sales, markup for sales, sales variation and sales
function. This study will be able to contribute immensely to
food costing and control in the hospitality industry with
Nigerian perceptive playing a majority role. It was conclude
that for a successful business activities or operation to be
achieved, an effective cost control and operations should be
introduced in the business or organization and operators
(investors) should not be in charge of managing the
operations and purchases of in the industry as this can
introduces bureaucratic measures through waste which cannot
be controlled and managed and as a result recommendations
were made that the operators of the industry should learn
and learn professionals for effective food costing and
control system and owners of the industry (business) should
draw a clear coast between ownership and management, to help
reduce management cost.
Key words: Food cost, Management cost, Operational
cost and selling price.
- Journal of Agricultural Science and Food Technology (JASFT)
- Journal of Medical and Biological Science Research (JMBSR)
- Journal of Scientific Research and Essays (JSRE)
- Research Journal of Educational Studies and Review (RJESR)
- Journal of Physical Science and Environmental Studies (JPSES)
- Research Journal of Engineering and Technology (RJET)
- Pearl Journal of Management, Social Science and Humanities (PJMSSH)