Metropolitan Community College

COURSE OUTLINE FORM

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Course Title: COST MANAGEMENT
Course Prefix & No.: CHRM 2460
/ LEC: 4.5 / LAB:
0 / Credit Hours:
4.5

COURSE DESCRIPTION: Practices for controlling portions, inventories and costs are explored as they affect business operations.

COURSE PREREQUISITE (S): CHRM 1010

RATIONALE: A chef or hospitality manager cannot be effective unless he/she understands the principles and procedures to control costs. He/she must be able to manage costs.

REQUIRED TEXTBOOK (S) and/or MATERIALS:

Title: Cost Control for the Hospitality Industry

Edition: Latest

Author: Coltman

Publisher: Wiley

Materials:

Attached course outline written by: Jim Trebbien Date:

Reviewed/Revised by: Jim Trebbien Date_

Effective quarter of course outline: 05/FA

Dean Date:

M. Jane Franklin

Course Objectives, Topical Unit Outlines, and Unit Objectives must be attached to this form.

TITLE: COST MANAGEMENT PREFIX/NO: CHRM 2460

COURSE OBJECTIVES:

1. To understand how to solve management problems, using available data.

2. To identify and evaluate where one finds useful data and how to interpret it.

3.  To understand the role costs play in determining budget and/or profit.

TOPICAL UNIT OUTLINE/UNIT OBJECTIVES:

UNIT I: COSTS AND DECISION MAKING

Upon completion of this unit, each student will be able to:

1. define the meaning of cost

2. list the types of costs and define each

3. separate fixed and variable costs

UNIT II: BUDGETING TO CONTROL COSTS

Upon completion of this unit, each student will be able to:

1. describe the purpose of budget

2. list and describe types of budgets

3. list the advantages and disadvantages of budgets

4. demonstrate how to develop a budget

5. describe the budget fiscal year cycle and steps in development of a budget

UNIT III: PURCHASING, INVENTORYING AND HOW THEY AFFECT COST CONTROL

Upon completion of this unit, each student will be able to:

1. define the role of purchaser

2. list the steps in proper purchasing

3. develop criteria in purveyor selection

4. define "value analysis"

5. describe ordering, receiving, and payments in cost control

6. define and describe what the purchaser needs to know to control costs.

7. list methods of purveyor and other forces

8. identify control and how it affects purchasing

9. demonstrate proper use of inventory control formulas

UNIT IV: FOOD COST

Upon completion of this unit, each student will be able to:

1. demonstrate use of food cost and control percentages

2. calculate menu costs

3. determine what a food cost % should be

4. define and demonstrate use of sales mix

5. analyze gross profit

6. describe how to increase gross profit

UNIT V: BEVERAGE COST CONTROL

Upon completion of this unit, each student will be able to:

1. identify the major categories of beverages

2. describe beverage sales mix

3. describe proper beverage purchasing methods

4. list methods of beverage theft and fraud (in cost) and methods of controlling them

5. identify beverage laws pertaining to the service and purchase of a alcoholic beverage. Also discussed will be control of consumption, dramshop, and internal controls and their implementation.

UNIT VI: LABOR COST CONTROL

Upon completion of this unit, each student will be able to:

1. identify the trends in labor cost control

2. determine the correct procedures in labor cost control

3. identify labor cost %'s, their uses and what expenses are included in labor costs

4. list the problems of productivity and their solutions to control costs

5. define job analysis, job descriptions, and task procedures and how they control costs

6. define and list the basis of standards and categories of labor cost control.

7. define the use of a staffing guide, forecasting, schedules, turnover labor cost analysis in controlling labor costs

8. describe the labor cost formula and apply it

9. describe the turnover cost formula and apply it

UNIT VII: MISCELLANEOUS COST CONTROL

Upon completion of this unit, each student will be able to:

1. define direct costs and apply the definitions to real life situations

2. define undisturbed expenses and describe them

3. define ZZB and its applications and uses

4. identify on actual statement analysis and how it works

5. define long term investments and control

6. define and explain asset management (long-term, current)

7.  define depreciation and how it applies to inventory and cost control

COURSE REQUIREMENTS/EVALUATION: Upon completion of the objectives of this course, the student will have displayed knowledge and comprehension of foodservice terms. Foodservice problems will be solved at the cognitive levels of application, analysis, synthesis and evaluation as well as levels affective and psychomotor behavior.

COURSE OBJECTIVES/ASSESSMENT MEASURES

COURSE OBJECTIVES
/

ASSESSMENT MEASURES

1. To understand how to solve management problems, using available data. / 1. Worksheets completed correctly
TEST QUESTIONS
2. To identify and evaluate where one finds useful data and how to interpret it. / 2. Worksheets completed correctly
TEST QUESTIONS
3. To understand the role costs play in determining budget and/or profit. / 3. Worksheets completed correctly
TEST QUESTIONS

Created by the Institute for the Culinary Arts October 2, 2004