COST ACCOUNTING IN HOSPITALITY

Dr. Rashmi Soni

GROUP MEMBERS: ANURAJ JOSEPH 1103 PAVAN KANCHAN 1117 MAMTA KOUNDAL 112O ADITYA UPADHYAY 1154 UMANG VAGHELA 1155 SUNIL WARRIER 1159

Costing
Costing includes the techniques and processes of ascertaining costs. The technique refers to principles and rules which are applied for ascertaining costs of product manufactured and services rendered.

COST ACCOUNTING
Tool of management. Provide management with detailed records of costs. Relates to cost of products, operations or functions. Refers to the process of determining and accumulating the cost of some particular product or activity.

METHODS OF COSTING Process Costing Job Costing Service Costing Contract Costing

RESTAURANT INDUSTRY
Restaurant/Food service market in India has witnessed tremendous growth in recent years. With increasing number of people eating out the industry offers major opportunities to the players to capture a larger consumer base. Changing demographic, rising income levels and increasing urbanization has also fuelled market growth. The growing segment comprises of formats like fast food chains, cafes and fine dining restaurants.

TYPES OF COSTS Food Cost Beverage Cost Salaries & Wages Repairs & Maintenance Direct Operating Costs Staff Uniform Costs Employee Benefits

Urban Bliss Restaurant

Location Type Nerul, Sector 46. Veg, Non-Veg (Fully A\C) Target Customer :Middle and upper Income Group. Future :Chain of restaurants across Western Indian Zone. : :

Restaurant Rent & Dimensions

AREA CALCULATION

CARPET AREA BUILDUP AREA

SERVICE AREA KITCHEN AREA Rent Deposit

1680 SQ FT. 2352 SQ FT.

1176 SQ FT. 504 SQ FT. Rs.35000 per month Rs. 3.5 Lacs.

Sample Menu
VEG PRICE NON-VEG PRICE PANEER TIKKA Rs. 125 MANDARIN MUSHROOM SOUP Rs. 85 RESHMI KABAB Rs. 160 CREAM OF CHICHKEN SOUP Rs. 100

RUSSIAN SALADRs. 80 MUTTER PANEER NAVRATAN KORMA BANARASI PULAO Rs. 100 Rs. 120 Rs. 120

CHICHKEN AND Rs. 95 PASTA MURG MAKHANI Rs. 170 MURG MASALA Rs. 160 MURG BIRYANI Rs. 150 Rs. 65 Rs. 40

SIZZLING BROWNIE CARROT HALWA

Product Costing

Particulars 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 200 gm Paneer 1 cup Green Peas 1 Onion 1 Tomato Masala Depreciation Chef salary per dish Waiter Salary per dish Making charges Miscellaneous charges Total Cost. Tax @ 12.36% Profit Margin @ 25% Selling Price

Costing Rs. 22 Rs. 8 Rs. 2 Rs. 2 Rs. 12 Rs. 9 Rs. 5 Rs. 3 Rs. 6 Rs. 2 Rs. 70 Rs. 9 Rs. 20 Rs. 100

Roti

Particulars 1. 2. 3. 4. 5. 50 Gm Atta Butter Making Charges

Cost Rs. 2 Rs. 2 Rs. 1

Salary for ChefRs. 1.50 Salary for Waiter Total Cost Rs. 0.50 Rs. 7

6. 7.

Tax @ 12.36% Re. 1 Profit Margin @ 25% Selling Price Rs. 2 Rs. 10

Equipment Qty
CHOPPING BOARD KNIVES WHISK BEATER ROUND SPOON FLAT SPOON PERFORATED SPOON SAUCE PAN WOK STRAINER LADLE 8 15 2 2 5 5 5 10 2 4 8

RatesCost
300/200/80/15/20/20/20/140/700 80 40 2400/3000/160/30/40/100/100/1400/1400/320 320

Equipments
Equipment LIGHTER STOCK POT GRIDDLE ROLLING PIN SKEWER BIG PERFORATED GREATER PEELER LIDS TOTAL COST Qty 2 8 4 4 10 2 2 4 10 Rate Cost 60/170/70/30 80/220 70/15 80 120/1360/140/120/800/440/140/60/800/13390/-

Heavy Equipments
Equipment Qty
GAS RANGE

Rate

Cost
50000/60000/90000/15000/15000/5000/10000/6000/2000/6000/259000/-

3 range 50000/2 range 30000/WORKING TABLE 6 15000/SLICER PULVERISER OVEN TANDOOR SALAMDAER GRILLER WEIGHING MACHINE TOTAL COST 1 1 1 1 1 1 1 15000/15000/5000/10000/6000/2000/6000/-

Service Area Requirement

Equipment Qty
A.P SPOON A.P FORK A.P KNIFE SOUP SPOON 200 200 200 100

Rate
20 20 20 21 20 23 23 35 30 150 8 8

Cost
4000/4000/4000/2100/4000/1840/1840/3150/300/750/640/640/-

DESSERT SPOON 200 SERVICE SPOON 80 SERVICE FORK ENTRE WATER JUG SALVER TEA SPOON COFFEE SPOON 80 90 10 15 80 80

Equipment
TEA CUP COFFEE CUP UNDERLINER DINNER PLATE QUARTER PLATE

Qty Rate
80 80 160 200 300 10 10 6 40 22 2500 3500 10 2000 8000

Cost
800/800/960 8000/6600/22500/3500/800/16000/15000/15000/117220/-

TABLES (3*3 ) ft (wooden) 09 TABLES (2.5*6) ft (wooden) TEA CUP TABLES(2*2)ft(wooden) CHAIR (wooden)
TOTAL COST

01 80 08 70

Licenses
Municipal license: 1. For the premises (commercial use) 2. Trade license 3. Health license 4. N.O.C from pollution department

 Police license

These come from police authorities 1.NOC from traffic dept. Under police 2.NOC from local Police Superintendent 3.Milk and milk products license from police 4.Water license 5.Coffee selling license 6.Waste disposal license 7.Weights and measure approval 8.Excise permits

 Other licenses
SHOP AND ESTABLISHMENT LISENCE. HACCP CERTIFICATE LABOUR LICENSE

DECOR
For area of 2816 sq ft, coloring and POP, at cost of Rs. 40 per sq ft is Rs. 112460. For coloring of kitchen , for area of 480 sq ft with white color, at the rate of Rs 10 per/sq ft is Rs. 3840. So Total Cost of Decor is Rs. 116300

Gas & Water Charges

GAS PER DAY : TWO COMMERCIAL CYLINDERS (19.2 KG) Rs. 2200 GAS PER MONTH : SIXTY COMMERCIAL CYLINDERS (19.2 KG) Rs 66000 WATER REQUIRED PER DAY : 2000 + 2000 LIT.

Lighting & Air Conditioning

Milky Bulb costs Rs 80 per/unit *24 = Rs. 1920 Tube Lights costs Rs 70 per /unit *5 = Rs. 350 Other Costs = Rs. 730 Split A/C 2 no's two tons = 2*20000/- = Rs.40000/ Split A/C 2 no's one tons = 2*14000/=Rs.28000/ Total Electricity Cost = Rs. 10000/-

Linen Requirement
Qty Rate Cost
SERVIETTE KICHEN DUSTER WIPING CLOTH 350 50 40 35/18/10/400/600/2500/12250 900 400 10400/14400/5000/43350/-

STAFF UNIFORM FOR SERVICE STAFF 26 STAFF UNIFORM FOR KITCHEN SUITE FOR MANAGER
TOTAL COST

24 2

*Note: Linen & Decor charges are spent annually.

Salary F&B Production

DESIGNATION HEAD CHEF CDP DCDP COMMIS HELPER TOTAL SALARY SALARY 18000/12000/9000/5500/3000/47500/-

Salary F&B Service

DESIGNATION MANAGER CAPTAIN STEWARD ASST. STEWARD HELPER TOTAL SALARY SALARY 18000/10000/8000/6000/3000/45000/-

Restaurant Cost Sheet

Particulars Provision - Food & Beverage Labour & Supervision Maintenance - Rent - Electricity Charges - Gas & Water Charges Depreciation Total Cost 35,000 10,000 76,000 45,761 3,59,261 1,00,000 92,500 Amount

CONCLUSION
Cost Minimization = Profit Maximization. Credit Extension Combo Offers Pre Booking Discounts