A
A LA CARTE Items are prepared to order and each one is priced separately.
ACCOUNTANT A person skilled in keeping and adjusting financial records.
ACCOUNTS PAYABLE Money owed for purchases.
ACCOUNTS RECEIVABLE Money owed by the customers.
ACTUAL-PRICING METHOD All costs plus the desired profits are included to determine a menu selling price.
ADVERSE IMPACT Impact of employer practices that result in higher percentages of employees from minorities and other protected groups.
ADVERTISING Purchase of space, time or printed matter for the purpose of increasing sales.
AFFIRMATIVE ACTION Steps to eliminate the present effects of past discrimination.
AGE DISCRIMINATION IN EMPLOYMENT
ACT OF 1967 Protects individuals over 40 years old.
AMBIANCE Sounds, sights, smells and attitude of an operation.
AMERICANS WITH DISABILITIES ACT (ADA) Prohibits discrimination against disabled persons.
ANNUAL Happening once in 12 months.
ANNUAL BONUS Monetary incentive tied to company profitability and designed to encourage continuous improvement in employee performance.
ANNUITY Promise of a definite payment for a specific period.
AP WEIGHT As-purchased weight.
APPLICATION FORM A form that, when filled out by a potential employee, gives information on education, prior work record and skills.
ARBITRATION Third-party intervention, in which the arbitrator has the power to determine and dictate the terms.
AS PURCHASED (AP) Item as purchased or received from the supplier.
AS SERVED (AS) Weight, size or condition of a product as served or sold after processing or cooking.
ASSESSOR Someone who estimates the value of property for the purpose of taxation.
ASSETS Anything of value; all property of a person, company or estate that can be used to pay debts.
AUTOMATION Automatic control of production by electronic devices.
B
BALANCE The amount that represents the difference between debit and credit sides of an account.
BALANCE SHEET Written statement that shows the financial condition of a person or business. Exhibits assets, liabilities or debts, profit and loss, and net worth.
BANK NOTE A note issued by a bank that must be paid back upon demand. Used as money.
BASELINE BUDGET Based on a past budget and adjusted for current conditions.
BASIC MARKETING MOVES Basic moves that an operation should use to increase its sales volume.
BATCH PREP RECIPE Lists prices per ingredient for a detailed recipe for the purpose of obtaining a total cost for one batch of a meal.
BATCHING Adjusting recipes for equipment or recipe size constraints.
BEGINNING INVENTORY The quantity and value of beverage and food products or operational supplies in stock at the beginning of an accounting period.
BEHAVIOR MODELING A training technique. Trainees are shown good management techniques by role-play or viewing a film. Trainees are then asked to play roles in a simulated situation, and supervisors give feedback.
BEHAVIORISTIC APPROACH TO CONTROL Control through workers’ desire to perform for the best interests of the organization.
BENCHMARK JOB The job that is used to secure the employer’s pay scale and around which other jobs are systematized in order of relative worth.
BENCHMARKING Analyzing operation features in comparison to the best of its competitors in the industry.
BENEFITS Indirect payments given to employees. These may include paid vacation time, pension, health and life insurance, education plans and/or rebates on company products.
BID SHEET A sheet that is used in comparing item prices from different vendors.
BLIND RECEIVING When there are no quantities or weights printed on packages. The receiver must count or weigh items.
BLOCK SCHEDULING Workers begin and end work at the same time on a specified shift.
BONA FIDE OCCUPATIONAL QUALIFICATION (BFOQ) Requirement that an employee be of a certain religion, sex or national origin where this is reasonably necessary to the organization’s normal operation. Specified by the 1964 Civil Rights Act.
BOTTLE MARK A label or ink stamp with information that identifies bottled products as company property.
BOTTOM UP BUDGET Secondary employees prepare a budget and then send it to upper management for approval and combining.
BOUNCEBACK CERTIFICATE OR COUPON A coupon good for a product upon a return visit. The customer is “bounced back” to the business.
BREADING The process of placing an item in flour, egg wash (egg and milk), then bread crumbs before frying or baking.
BREAKEVEN ANALYSIS A computative method used to find the sales amount needed for a food-service operation to break even.
BREAKEVEN CHART A chart that shows the relationship between the volume of business and the sales income, expenditures and profits or losses.
BREAKEVEN POINT The association between the amount of business and the resulting sales income, expenditures and profits or losses. When income and costs are equal.
BUDGET A plan for a specific period that estimates activity and income and determines expenses and other adjustments of funds. Planning the company’s expenditures of money, time, etc.
BUDGET CALENDAR The dates/time that a budget should be finished.
BURNOUT Depletion of physical and mental capabilities usually caused by setting and attempting unrealistic goals.
BUSINESS INTERRUPTION INSURANCE Insurance that covers specific costs when a business cannot operate as normal.
BUSINESS PLAN Defines the business image, clarifies goals, calculates markets and competition and determines costs and capital needs.
BUTCHER AND YIELD TESTS Testing of products to determine usable amounts after preparation.
BY-PRODUCT Item or items that are made in the course of producing or preparing other items.
C
CALCULATE Compute or estimate an amount.
CALENDAR YEAR Consisting of 365 days. The period that begins on January 1 and ends on December 31.
CALL BRAND The brand (of a type of liquor) asked for by customers.
CALL DRINK A drink made with brand-name liquor.
CAPACITY The volume limit.
CAPACITY MANAGEMENT The use of an operation’s resources to serve the greatest number of guests.
CAPITAL Financial assets.
CAPITAL ACCUMULATION PROGRAMS Long-term incentives. Plans include stock options, stock appreciation rights, performance achievement plans, restricted stock plans, phantom stock plans and book value plans.
CAPITAL BUDGET Equipment, building and other fixed assets.
CARRYOVER Amount left over.
CASE STUDY METHOD Method in which the manager is given a written description of an organizational problem to diagnose and solve.
CASH BUDGET The amount of money received, the amount of money disbursed, and the resulting cash position.
CASH FLOW Profit plus depreciation allowances.
CASH ON DELIVERY (COD) Merchandise must be paid for on delivery or prior to delivery.
CASH OR CASH OUTLAY FOR PROJECT Annual net income (or savings) from project before depreciation but after taxes.
CASHBOOK A book containing records of all income and expenses of a business operation.
CELSIUS A unit used to measure temperature in the metric system, divided into 100 equal parts called degrees; previously called centigrade.
CENTIGRADE See Celsius.
CENTIMETER One hundredth part of a meter.
CENTRAL TENDENCY The disposition to rate all employees the same way, such as rating them all average.
CERTIFICATE Authorizing document issued by a bank indicating that a specific amount of money is set aside and not subject to withdrawal except on surrender of the certificate.
CHAIN OF COMMAND A top authority and a clear line of authority from that top to each person in the organization. Also called the scalar principle.
CIPHER Zero.
CITATIONS SUMMONS Informs employers and employees of regulations and standards that have been violated.
CIVIL RIGHTS ACT Law that makes it illegal to discriminate in employment on the basis of race, color, religion, sex or national origin.
CIVIL RIGHTS ACT OF 1991 (CRA 1991) Places the burden of proof back on employers and permits compensatory and punitive damages.
CLASSES Groupings of jobs based on a set of rules for each grouping. Classes usually contain similar jobs.
CLASSICAL PRINCIPLES (OR THEORY) OF ORGANIZATION Focuses on enterprise structure and work allocation.
CLASSIFICATION (OR GRADING) METHOD Categorizing jobs into groups.
CLASSIFICATION RANKING SYSTEM Constitutes grades and categories to rank various jobs.
COLLECTIVE BARGAINING Representatives of management and the union meet to negotiate the labor agreement.
COMMISSION An individual’s pay based on the amount of sales personally derived.
COMMITTED ITEM A product that is scheduled for production between the time it is ordered and the time it is received.
COMMON SIZE ANALYSIS Analysis of financial statements by dividing each item on two or more statements by the total revenue for the period.
COMPARATIVE ANALYSIS Analysis of displaying the difference of line items on financial statements for two or more financial periods or two or more financial dates along with the percentage changes.
COMPENSABLE FACTOR A fundamental, compensable element of a job, such as skills, effort, responsibility and working conditions.
COMPENSATION Something given in return for a service or a value.
COMPETITIVE ADVANTAGE The elements that allow an organization to distinguish its product or service from those of its competitors.
COMPOUND Composed of more than one part.
COMPUTERIZED By means of a computer or computers.
CONFIGURATION An arrangement.
CONFRONTATION MEETINGS The method of explaining and bringing up intergroup misconceptions and problems so that they can be resolved.
CONSIGNMENT PRODUCTS Items provided to a company by a vendor who charges for them after they are used.
CONSUMER ORIENTATION The needs of consumers determine management decisions.
CONTRIBUTION RATE The contribution margin, in dollars, divided by sales.
CONTROL To have charge of.
COOK/CHILL SYSTEM Cooking food item to “almost done” state, packaging it (above pasteurization temperature) and chilling it rapidly.
CO-OP BUYING A group of similar operations working together to secure pricing through mass purchasing at quantity discount prices.
CORPORATION A group of people who obtain a charter giving them (as a group) certain legal rights and privileges distinct from those of the individual members of the group.
COST The amount paid to acquire or produce an item.
COST ALLOCATION The process of distributing costs among departments.
COST CONTROLLER The person or persons whose responsibilities include analyzing expenses, revenues and staffing levels.
COST FACTOR Cost calculated by dividing the cost per servable pound by the purchase price per pound.
COST LEADERSHIP Being the low-cost leader in an industry.
COST OF SALES Food and beverage cost for menu items in relation to the sales attained by these items during a specific period.
COST PER PORTION The cost of one serving calculated by total recipe cost divided by the number of portions.
COST PER SERVABLE POUND The cost calculated by multiplying the purchase price by the cost factor.
COST-BENEFIT ANALYSIS Determining the cost, in monetary terms, of producing a unit within a program.
COST-EFFECTIVENESS ANALYSIS Identifying the cost, in nonmonetary terms, of producing a unit.
COST-PLUS Paying vendors cost plus a percentage.
COUNT The number of units or items.
CPA (CERTIFIED PUBLIC ACCOUNTANT) An accountant who has fulfilled certain requirements and abides to rules and regulations prescribed by the American Institute of Certified Public Accountants.
CPP (COST PER POINT) BUDGETING Method used to obtain an advertising level at a predetermined cost.
CRITERION VALIDITY Validity is based on showing that scores on a test are related to job performance.
CULTURAL CHANGE Changes in a company’s shared values and aims.
CURRENT LIABILITY A debt or obligation that will become due within a year.
CURRENT RATIO Current assets divided by current liabilities.
CUTTING LOSS Weight lost from a product during fabrication.
CVP The relationship between cost, volume and profit.
D
DAILY PRODUCTION REPORT A list of items and quantities produced during a specific shift or day.
DEAD STOCK ITEM Item no longer offered.
DEBIT Showing something owed or due.
DECIMAL A system of counting by tens and powers of ten.
DECIMETER Equal to one tenth of a meter.
DEDUCTION A value that may be subtracted from taxable income.
DEFAULT Failure to pay when due.
DEFERRED PROFIT-SHARING PLAN A plan in which a certain amount of profits are credited to an employee’s account. May be payable at retirement, termination or death.
DEFINED BENEFIT PENSION PLAN A formula for determining retirement benefits.
DEFINED-CONTRIBUTION PLAN The employer makes specific contributions to an employee’s pension but does not guarantee the amount.
DEGREE DAY The difference between outside temperature and 65° F.
DECAMETER Equal to 10 meters.
DELEGATION Distribution of authority and responsibility downward in the chain of command.
DEMOGRAPHIC SEGMENTATION Segmentation based on human population variables such as age, gender and family size.
DENOMINATOR Common trait or standard.
DEPOSIT To put in a place, especially a bank, for safekeeping.
DEPRECIATION Lessening or lowering in value.
DESIGNATE Point out; indicate definitely.
DIFFERENTIAL (BEVERAGE) Difference of the sales value of a drink from the standard sales value of beverages used.
DIFFERENTIATE To distinguish a product or service from similar products or services.
DIFFERENTIATION Trying to be unique within an industry with dimensions that are valued by buyers.
DIRECT COSTS (FOOD) The costs associated with direct purchases.
DIRECT ISSUE Items that are directly delivered and charged to a food-and-beverage outlet—not stored in a central storeroom.
DIRECT LABOR Labor used directly in the preparation of a food item.
DIRECT PURCHASES Food delivered directly into the kitchen and charged as a food cost on that day.
DIRECTING Showing and explaining to others what needs to be done and helping them do it.
DISCIPLINE A correction or action towards a subordinate when a rule or procedure has been violated.
DISMISSAL Involuntary termination of employment.
DIVIDEND An owner’s share of the surplus when a company shows a profit at the end of a period.
DIVISOR A number by which another (the dividend) is divided.
DOWNSIZING The process of reducing the size of an operation.
E
EP WEIGHT Edible portion weight. The usable portion after processing.
EARNINGS PER SHARE Earnings of a company divided by the number of its stock shares outstanding.
EARNINGS RATIO The net profit before taxes divided by net sales.
ECONOMIC ORDER QUANTITY (EOQ) Determines a purchase quantity that does the best of minimizing purchases and inventory costs.
ECONOMIC STRIKE A strike resulting from a failure to agree about terms of a contract that involve wages, benefits and other employment conditions.
EDIBLE PORTIONS (EP) The actual yield available for processing a food item.
ELASTICITY OF DEMAND How demand for a product can fluctuate in response to other factors.
ELASTICITY OF SUPPLY The response of output to changes in price. Quantity supplied divided by the percentage change in the price.
ELECTRONIC DATA INTERCHANGE (EDI) Allows a food-service operator to receive prices electronically and generate an order form to send back.
ELECTRONIC SPREADSHEET Computerized worksheet with vertical and horizontal columns that are easily manipulated.
EMBEZZLEMENT Taking of property by someone to whose care it has been entrusted.
EMPLOYEE ADVOCACY Human Resources takes responsibility for defining how management should treat employees and represent the interests of employees within the framework of its obligation to senior management.
EMPLOYEE ASSISTANCE PROGRAM (EAP) Program employers promote to help employees overcome employee assistance program, usually in regard to alcoholism, drug abuse,
EMPLOYEE COMPENSATION Any form of pay or reward an employee gets from his or her employment.
EMPLOYEE ORIENTATION Introduction of basic company background information to new employees.
EMPLOYEE RETIREMENT INCOME SECURITY ACT (ERISA) The law that provides government protection of pensions for all employees with pension plans.
EMPLOYEE STOCK OWNERSHIP PLAN (ESOP) A company contributes shares of its own stock to a trust to which additional contributions are made annually. Upon retirement or separation from service the trust distributes the stock to employees.
EMPOWERMENT Giving lower-level employees the opportunity, responsibility and authority to solve problems.
ENDING INVENTORY The quantity and value of items on hand at the end of a period.
ENTREE The main dish of a meal.
ENTROPY Lack of useful input causing a system to solidify or run down.
EQUAL EMPLOYMENT OPPORTUNITY COMMISSION (EEOC) The commission, created by Title VII, empowered to investigate job discrimination complaints and sue on behalf of complainants.
EQUAL PAY ACT OF 1963 An amendment to the Fair Labor Standards Act designed to require equal pay for women doing the same work as men.
EQUIPMENT Machines or major tools necessary to complete a given task.
EQUITY FINANCING Financing by owners of the organization or company.
EQUIVALENT Equal in value or power.
ESTIMATE Judgment or guess determining the size, value, etc., of an item.
EVALUATE To find the value or amount of.
EXCEPTION PRINCIPLE Recurring decisions are handled in the normal manner and specific ones are referred upward for appropriate action.
EXPECTANCY CHART Shows the relationship between test scores and job performance.
EXPENDITURE Amount spent.
EXPIRATION The date on which a food or beverage product ceases to be usable.
EXPLODED RECIPE Changing recipe quantities to create the number of portions required.
EXTENSION To equate out, lengthen or widen.
EXTRA INDUSTRY Comparison of your practices with other industries.
F
FABRICATED Made or made up.
FABRICATED PRODUCT The item after trimming, boning, portioning, etc.
FABRICATED YIELD PERCENTAGE The yield, or edible portion, of an item shown as a percentage of the item as purchased.
FACTOR One of two or more quantities, multiplied.
FACTOR SYSTEM Raw food cost is multiplied by a factor to determine a menu selling price.
FAIR LABOR STANDARDS ACT Passed in 1936 to provide for minimum wages, maximum hours, overtime pay and child labor protection.
FINANCES Funds, money or revenue; financial condition.
FINANCIAL POSITION The status of a company’s assets, liabilities and equity.
FINANCIAL STATEMENTS Used in a business operation to inform management of its exact financial position.
FINISHED GOODS Menu items that are prepared and ready to serve.
FIRM PRICE The price agreed to by the purchaser and vendor.
FISCAL YEAR The time between one yearly settlement of financial accounts and another.
FIXED BUDGET Budget figures based on a definite level of activity.
FIXED EMPLOYEES Employees who are necessary no matter the volume of business.
FLEX PLAN A plan giving employees choices regarding benefits.
FLEXIBLE BUDGET Projected revenue and expenditures based on production.
FLEXIBLE CAPACITY STRATEGY Handling varying volumes of business without having high overhead costs.
FLEXTIME A system that allows employees build their workdays around a core of midday hours.
FLIGHT The period of an advertiser’s campaign.
FLUCTUATE Change continually.
FOOD COST The cost of food items purchased for resale.
FOOD INGREDIENT DATABASE Contains basic information about each food item. Name, cost, purchase units, inventory units, issue units, vendors and conversion factors are included.
FOOD ITEM DATA FILE (FIDF) NUMBER The number assigned to a food item in a database.
FOOD COST PERCENTAGE Cost of food divided by sales from that food.
FORECAST A prediction.
FORECASTING Estimating future revenue and expense.
FORMAT Refers to size, shape and general arrangement of a book, magazine, etc.
FORMULA A recipe or equation.
FOUR Cs OF CREDIT Character, capital, collateral and the capacity to repay.
FOUR-DAY WORKWEEK An arrangement that allows employees to work four ten-hour days instead of the more usual five eight-hour days.
FRACTION One or more of the equal parts of a whole.
FRANCHISE A franchise grants the right to use a name, methods and product in return for franchise fees.
FRANCHISEE The person or organization acquiring the franchise.
FRANCHISOR The person or company selling the franchise.
FREEZER BURN Fat under the surface of food having become rancid and possibly having caused a brown deterioration.
FTE, OR FULL-TIME EQUIVALENT A method of measuring labor costs with use of overtime pay.
FUNDAMENTAL EQUATION ASSETS Liabilities plus equity.
G
GARNISH To decorate.
GELATIN A tasteless, odorless substance that dissolves easily in hot water and is used in making jellied desserts and salads.
GENERAL LEDGER (GL) A ledger containing all financial statement accounts.
GOURMET A lover of fine foods.
GRADUATED Arranged in regular steps, stages or degrees.
GRAM Twenty-eight grams are equal to one ounce.
GRATUITY/TIP A gift or money given in return for a service.
GRAZING When employees consume food, unauthorized.
GRIEVANCE A complaint against the employer that may include factors involving wages, hours or conditions of employment.
GROSS The overall total.
GROSS COST The total cost of food consumed.
GROSS MARGIN Sales minus the cost of food.
GROSS PAY Money earned before deductions are subtracted.
H
HARD WATER Water containing excessive calcium and magnesium.
HEALTH MAINTENANCE ORGANIZATION (HMO) Health-care providers that use their own physicians and facilities.
HECTOMETER Equal to 100 meters.
HEDGING A contract on a future price entered into to secure a fixed price.
HOMOGENEOUS ASSIGNMENT A form of specialization that assigns an employee to one job or limits the employee to a related specific task.
HORIZONTALLY On the same level.
HOST/HOSTESS The person who receives guests.
HOUSE BRAND The brand of liquor normally served by a given bar.
HVAC Heating, ventilation and air-conditioning.
HYPOTHETICAL Assumed or supposed.
I
IMPERIAL SYSTEM A measurement system using pounds and ounces for weights and pints for volume.
INDICATOR That which points out.
INGREDIENT One part of a mixture.
INGREDIENT ROOM Where non-cooking personnel prepare food before it is sent to cooking personnel.
INSTALLMENT Part of a sum of money or debt to be paid at regular times.
INSUBORDINATION Willful disobedience or disregard of a boss’s authority.
INSURANCE Trading the possibility of a loss for the certainty of reimbursement. Paid by small premiums.
INTEGRATED BEVERAGE CONTROL SYSTEM An automatic beverage dispensing system integrated with a computer or point-of-sale register.
INTEREST Money paid for the use of borrowed money.
INTERNAL CONTROL The methods and measures within a business to safeguard assets, check the accuracy and reliability of accounting data and promote operational efficiency.
INVENTORY A list of items with their estimated value and the quantity of each.
INVENTORY CONTROL System used for maintaining inventories.
INVENTORY CONTROL METHOD (BEVERAGE) Method in which the beverage amount used is determined from guest checks and then reconciled with replacement requisitions.
INVENTORY TURNOVER The amount of times inventory turns over during a specific period.
INVENTORY VARIANCE ACCOUNTING The amount of sales of an item is compared with the number used from inventory records, and the variance is noted.
INVERT Turn upside down.
INVOICE Shows prices and amounts of goods sent to a purchaser.
ITEMIZE To state by item.
J
JIGGER Used to serve a volume predetermined of a beverage.
JOB ANALYSIS Job description and specifications.
JOB DESCRIPTION A description of tasks and duties required on a job.
JOB SHARING Allowing two or more people to share a single full-time job.
JOB SPECIFICATIONS The qualifications needed to hold a job. Includes educational, physical, mental and age requirements.
K
KILOGRAM Equal to 1,000 grams.
KILOMETER Equal to 1,000 meters.
KLEPTOMANIA The persistent impulse to steal.
L
LAPPING A type of embezzlement when funds are taken from an account then covered with later receipts.
LEAST SQUARES ANALYSIS In-depth method of calculating an average of variable or fixed costs.
LEGUMES Vegetables, especially beans and peas; technically, plants in the pea family, or the fruits and seeds of such plants.
LEVERAGING Using borrowed money to acquire assets to make money.
LIABILITY Being under obligation or debt.
LINE MANAGER The manager who is authorized to direct work and is responsible for accomplishing the company’s goals.
LINE OF IMPLEMENTATION Division of planning and organizing activities from “doing” activities.
LIQUIDITY RATIOS Ratios that show the ability to meet short-term obligations.
LIQUOR COST Amount paid for liquor after discounts.
LIQUOR COST PERCENT The portion cost divided by the selling price.
LITER Metric system measure of volume.
LOCKOUT When an employer refuses to provide opportunities to work.
LOGO Trademark.
LONG-TERM DEBT Fixed liabilities.
LOSS CONTROL Attempting to prevent losses.
M
MAITRE D’ Person in charge of dining room service.
MANAGEMENT BY OBJECTIVES (MBO) Setting measurable goals with employees and periodically reviewing their progress.
MANAGEMENT PROCESS Five basic functions of planning, organizing, staffing, leading and controlling.
MANAGEMENT PROFICIENCY RATIO Net profit after taxes divided by total assets.
MANUAL Done by hand.
MARGIN The difference between the cost and the selling price.
MARGINAL COST The amount of output by which aggregate costs are changed if the volume of output is increased or decreased by one unit.
MARKET Groups with similar characteristics, wants, needs, buying power and willingness to spend for dining or drinking out.
MARKET PRICE INDEX Used to show the change in the cost of raw foods.
MARKET SHARE The share of a market that a business has for its products or services.
MARKETING Means by which an outlet is exposed to the public.
MARKETING OBJECTIVES Measurable and achievable goals that marketing efforts are intended to accomplish.
MARKETING PERSPECTIVE Consumer satisfaction is placed first in all planning, objectives, policies and operations.
MARKETING POLICY A course of action to be followed as long as conditions exist.
MARKETING SEGMENTATION Dividing the market into smaller sub-markets or segments.
MARKETING STRATEGY Overall plan of action that enables the outlet to reach an objective.
MARKUP Amount by which a higher price is set.
MBWA Management by walking around.
MEASURE A lineal measure equal to a thousandth of a meter.
MEAT TAG Used for identification and verification.
MEDIA Various types of advertising, such as television, radio and newspapers.
MEDIATION Intervention using a neutral third party to help reach an agreement.
MEDICARE A federal health insurance program for people 65 or older and certain disabled people.
MENU A list of dishes served at a meal.
MENU ENGINEERING Technique that is used for analyzing menu profitability and popularity.
MENU MIX Menu popularity calculation.
MENU PREFERENCE FORECASTING Predicts how various items will sell when in competition with other items.
MENU PRICE The amount that will be charged for an item.
METRIC Pertains to the meter or to the system of weights and measures based on the meter and the kilogram.
MILL When dealing with monetary numbers, the third place to the right of the decimal.
MILLIGRAM One thousandth part of a gram.
MILLILITER One thousandth part of a liter.
MILLIMETER One thousandth part of a meter.
MISSION STATEMENT A statement giving the reason why the organization exists and what makes it different from other organizations.
MODEM ORGANIZATION THEORY A behavioral approach to organization.
MODULE A discrete and identifiable program.
MONETARY To do with money or coinage.
MOVING AVERAGE The total of demand in previous periods divided by the number of periods.
MUNICIPAL SOLID WASTE (MSW) Waste products that are deposited in landfills.
N
NATIONAL EMERGENCY STRIKES Strikes that might “imperil the national health and safety.”
NET The remaining amount after deducting all expenses.
NET PRESENT VALUE (NPV) The present value of future returns discounted at the appropriate cost of capital minus the cost of the investment.
NET PROFIT Profit after all product costs, operating expenses and promotional expenses have been deducted from net sales.
NET PURCHASE PRICE The price paid by the company for one unit.
NET WORTH Excess value of resources over liabilities.
NORRIS-LAGUARDIA ACT This law marked the era of strong encouragement of unions and guaranteed each employee the right to bargain collectively “free from interference, restraint or coercion.”
NUMERAL Symbol for a number.
O
OCCUPATIONAL MARKET CONDITIONS Published projections of labor supply and demand for various occupations by the Bureau of Labor Statistics of the U.S. Department of Labor.
OCCUPATIONAL SAFETY AND HEALTH ACT Law passed by Congress in 1970 assuring every working man and woman in the nation safe and healthful working conditions to preserve our human resources.
OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION (OSHA) The agency created within the Department of Labor to set safety and health standards for all workers in the United States.
ON-THE-JOB TRAINING (OJT) Training to learn a job while working it.
OPEN BAR Practice at banquet functions whereby customers are not charged individually for the drinks they consume. The host pays for banquet-goers’ consumption.
OPEN DEPARTMENT REGISTER KEYS Keys that break down sales by categories.
OPEN MARKET BUYING Food purchasing method where competitive bids are secured for various items.
OPERATING BUDGET Detailed revenue and expense plan for a determined period.
OPERATING RATIO Net profit divided by net sales.
ORGANIZATIONAL CHART Shows the relationships of jobs to each other with lines of authority, responsibility and communication.
ORGANIZATIONAL DEVELOPMENT INTERVENTIONS Techniques aimed at changing employees’ attitudes, values and behavior.
OUTPUT The end product.
OUTSOURCING Calling upon other companies help supply your products.
OVERHEAD-CONTRIBUTION METHOD All non-food cost percentages are subtracted from 100. The resulting figure is divided into 100 and that figure times the raw food cost equals the menu selling price.
OVERTIME Time exceeding regular hours.
P
P AND L SHEET A profit and loss statement.
PAR STOCK Stock levels established by management for individual inventory items in varying locations.
PARKINSON’S LAW Workers adjust pace to the work available.
PAYBACK PERIOD Period of time required to recover an expenditure.
PAYROLL A list of employees and amounts to pay them, as well as records pertaining to these payments.
PENSION BENEFITS GUARANTEE CORPORATION (PBGC) Established under ERISA to ensure that pensions meet vesting obligations and to insure pensions should a plan terminate without sufficient funds to meet its vested obligation.
PENSION PLANS Plans that provide a fixed sum when employees reach a predetermined retirement age or when they no longer work due to disability.
PERCENTAGE CONTROL SYSTEM Wherein the cost of food or beverage is divided by sales to provide a percentage.
PERCEPTION OF VALUE A consumer’s perception of what a product is worth.
PERPETUAL Continuous, endless.
PERPETUAL INVENTORY Accounting for inventory changes. Beginning and ending inventory figures are changed along with any sales or purchases.
PHYSICAL INVENTORY A count of all items on hand.
PIECEWORK The system of pay based on the number of items produced by each individual worker.
POINT-OF-SALE (POS) SYSTEM A sales transaction register and processor.
POPULARITY INDEX Total sales of an item divided by total number of that item sold.
PORTION One serving.
PORTION CONTROL Ensures that the correct amount is being served each time.
PORTION COST The cost of one serving.
PORTION SERVED The amount served to a customer.
PORTION SIZE A specific portion amount.
POSITION REPLACEMENT CARD A card prepared for each position in a company. Shows possible replacement candidates and their qualifications.
POTENTIAL COST Calculating what the expected cost of an item should be.
PPBSE Planning, programming, budgeting, staffing and evaluating.
PRE-CHECKING SYSTEM Independent record of what is ordered from a kitchen.
PRE-COST/PRE-CONTROL Accounting system that determines what the food cost should be, compares it with the actual food cost, and includes sales analysis.
PREFERRED PROVIDER ORGANIZATIONS (PPOS) Groups of health-care providers that contract with employers, insurance companies or third-party payers to provide medical care services at a reduced fee.
PREP YIELD PERCENTAGE The ratio of product yield after preparation to the quantity of product as purchased.
PRICE ELASTICITY The change in the rate of sales due to the change in price.
PRICE INDEXING Measures the effect of product price changes.
PRICE LOOK-UP (PLU) Assigned menu item numbers in POS systems.
PRIMAL CUT Primary division for cutting meat into smaller cuts.
PRIME COST The cost of a product after calculating and adding in labor.
PRINCIPAL Sum of money on which interest is paid.
PRIVILEGE CONTROL SYSTEM A system that permits or denies access to restricted areas.
PRO FORMA Statement prepared on the basis of anticipated results.
PROCEDURE The method of doing a task.
PRODUCT SPECIFICATION A listing of quality and service requirements necessary for products to be purchased from a vendor.
PRODUCTION SCHEDULE The items and quantities that must be produced for a specific meal, day, etc.
PROFILE Data creating an outline of significant features.
PROFIT Gain.
PROPORTION The relationship between one thing and another with regard to size, number or amount.
PROPRIETORSHIP Ownership.
PSYCHOGRAPHIC SEGMENTATION Segmentation based on lifestyles.
PURCHASE SPECIFICATIONS Standard requirements established for procuring items from suppliers.
PURVEYOR One who supplies provisions or food.
Q
QUALITY CONTROL Assuring the execution of tasks and responsibilities according to established standards.
QUANTITATIVE FORECASTING Forecasting based on past and present numerical data.
QUANTITATIVE METHODS Using numbers to help make decisions.
QUANTITY The amount; how much.
QUICK RATIO Current assets less inventory value divided by current liabilities.
R
RANDOM WALK Assuming a present period of sales will be the same as a past period.
RANKING METHOD Ranks each job relative to all other jobs.
RATIO The ratio between two quantities is the number of times one contains the other.
RATIO ANALYSIS A technique for determining staff needs by using ratios between sales volume and the number of employees needed.
REACH Percentage of people in a target audience who will see or hear a specific advertising message.
RECEIPT A written statement that something has been received.
RECEIVING REPORT A report that indicates the value and quantity of items received.
RECIPE Directions used for preparing a menu item.
RECIPE COST The total cost of all ingredients in a recipe.
RECIPE YIELD The weight, count or volume of food that a recipe will produce.
RECONSTITUTE Put back into original form, especially by rehydration.
RED-LINING Placing a red mark on a guest check so it cannot be used again.
REENGINEERING To change an enterprise to be more customer oriented or more efficient.
REPORT An account of facts used to give or get information.
REQUISITION To apply for something needed.
RESIDUAL INCOME ANALYSIS (RIA) Comparing the return on an investment to the cost of invested capital.
RETURN ON INVESTMENT A ratio found by dividing profit by investment.
REVENUE Income.
REVENUE CENTER Outlet or department that produces revenue.
RFP Request for proposal.
ROI (RETURN ON INVESTMENT) Incremental sales dollars divided by total costs.
ROP (RUN OF PAPER/RUN OF PRESS) Placement of advertisement anywhere within a publication that the publisher elects.
ROTATING MENU A menu that alternates in a series. Usually set up on a yearly basis.
S
SALARY A regular payment for services rendered.
SALES MIX The number of sales of individual menu items.
SALES REVENUE Money from the sale of certain items.
SCATTER PLOT Helps identify the relationship between two variables.
SEAT TURNOVER The number of times a seat is occupied during a meal period. Calculate by dividing the number of guests seated by the number of available seats.
SENSIBLE HEAT Heat measured by a thermometer.
SERVER BANKING When the server or bartender also does the cashier duties.
SHRINKAGE The amount of food lost due to cooking, dehydration or theft.
SHRINKAGE (INVENTORY) The difference between what is on hand and what should be on hand.
SIMPLE RANKING SYSTEM Ranking jobs in order of difficulty or importance.
SIMPLIFY To make easier to understand or carry out.
SMART CARD A credit card with a computer chip that holds data.
SOCIAL APPROACH TO MANAGEMENT Considers management’s responsibilities to employees, customers and community as well as to its stockholders.
SOLO INSERT Usually printed on different stock than that used by the publication, this page is printed by the advertiser and inserted into a magazine or newspaper by the publisher.
SOLVENCY RATIOS Ratios that show an organization can meet its long-term debt obligations.
SPECIFICATION A detailed statement of the particulars of an item.
SPILLAGE The alcohol lost during the drink making process.
SPOILAGE Loss due to poor food handling.
STAFF MANAGER The manager who assists and advises line managers.
STAGGERED SCHEDULING Scheduling employees to start and stop at different times according to the work pattern.
STAGGERED STAFFING Employees are staffed according to business volume.
STANDARD HOUR PLAN An employee is paid a basic hourly rate and an extra percentage of his or her base rate for production exceeding the standard.
STANDARD RECIPE Producing a particular food or drink item by a definite formula.
STANDARD-COST METHOD (BEVERAGE) Determines the cost of beverages from the number of each beverage sold then compares it to the cost of beverage requisitions.
STANDARDIZE To make the same in size, shape, weight, quality, quantity, etc.
STANDARDIZED RECIPE Directions describing the way an establishment prepares a particular dish.
STANDARD-SALES METHOD (BEVERAGE) Comparing actual beverage sales with the sales value of the beverage.
STANDING ORDER An order for delivery that is automatic.
STATEMENT OF INCOME Shows whether an operation has made or lost money.
STATIC MENU A menu that rarely changes.
STEPPED COSTS Costs which increase in elongated steps but at regular intervals.
STOCK OPTION The right to purchase a stated number of shares in a company at today’s price at a future time.
STOCKHOLDER The owner of stocks or shares in a company.
STOREROOM PURCHASES Items are placed into storage rather than sent to the kitchen.
STORES (FOOD COST) The value of food that is in storage.
STRAIGHT LINE METHOD Used when figuring depreciation on an item.
STRATEGIC CHANGE A change in a company’s strategy, mission or vision.
SUMMARIZE Briefly express, stating the main points.
SUNK COSTS Costs already incurred that cannot be recouped.
SYSTEM Components working together in the most efficient way.
T
TABLE D’HOTE A complete meal at a set price.
TARGET FOOD COST The amount a company hopes to spend for a particular menu item.
TENDER KEYS Cash register keys that break down sales by payment method.
THERM 100,000 Btu.
TIE-INS Joint venture promotions involving your company and another.
TIME AND MOTION STUDY A study done to establish a standard time for each job.
TIPPING FEE The cost of disposing of waste at a landfill.
TITLE VII OF THE 1964 CIVIL RIGHTS ACT States that an employer cannot discriminate on the basis of race, color, religion, sex or national origin.
TOP DOWN BUDGET A budget prepared by upper management and “passed on” to operating units.
TOTAL QUALITY MANAGEMENT (TQM) A program aimed at maximizing customer satisfaction through continuous improvements.
TRAINING Teaching new employees the basic skills needed to perform their jobs.
TREND ANALYSIS Study of a company’s past employment needs over a time period of years to predict future needs.
TRIM The part or quantity of a product removed during preparation.
TRIPLICATE Three identical copies.
TUMBLE CHILL SYSTEM Pumpable foods prepared with steam kettles and then rapidly chilled.
U
U.S. SYSTEM The system of measurement used in the United States, whereby weight is measured in pounds and ounces, and volume is measured in cups and gallons.
UNIFORM PRODUCT CODE (UPC) A computer readable code on a package.
UNIT Refers to the number or amount in a package.
UNIT COST The purchase price divided by the applicable unit.
USABLE PORTION The part of a fabricated product that has value.
USAGE METHOD (OF FOOD PURCHASING) Purchasing food based on past consumption.
V
VARIABLE COST The production cost that changes in direct proportion to sales volume.
VARIABLE EMPLOYEES Employees whose time requirements change with changes in business volume.
VARIABLE RATE Variable costs divided by sales.
VARIATION The extent to which a thing changes, or the change itself.
VENDOR The person or company who sells.
VERBALLY Expressed in words.
VERSATILE Easily changing or turning from one action to another.
VERTICAL Straight up and down.
VOLUME Calculated as length times width times height.
VOUCHER Evidence of payment in written form such as a receipt.
W
WAGES The amount paid or received for work.
WEIGHT The measurement of mass or heaviness of an item.
WELL DRINK A drink not made with name-brand liquor.
WITHHOLDING TAX The deduction from a person’s paycheck for the purpose of paying income taxes.
WORK SAMPLES Job tasks used in testing an applicant’s performance.
WORK SIMPLIFICATION Finding the easiest and most productive way to perform a job or task.
WORKING CAPITAL The difference be-tween current assets and current liabilities.
X
X MODE Allows reports to be produced on the POS register without resetting totals.
Y
YIELD The total created or the amount remaining after fabrication. The usable portion of a product.
YIELD CONVERSION FACTORS A factor that when multiplied by the gross weight amount of an item purchased shows how much will be available.
YIELD PERCENTAGE/YIELD FACTOR The ratio of the usable amount to the amount purchased.
Z
Z MODE Produces final reports and clears information from a POS register.
ZERO-BASED BUDGET A budget prepared without previous budget figures.