![]() ![]() Occupancy Costs (Rent, building insurance, real estate and property taxes, equipment leases, etc.).Non-controllable expenses tend to be fixed in nature and cannot usually be changed within the normal rhythm of business (or fiscal year) and include costs under the following categories: Direct Operating Expenses (uniforms, laundry, tableware, paper supplies, cleaning supplies, contract cleaning, etc.)Īs an example “Flowers and Decorations”, which is a line item under Direct Operating Expenses, is a controllable expense insofar as the related cost is directly under the control of a manager who can modify the amount at will.These costs can be increased or decreased within a reasonably short period and include such categories as: No matter what the category of operation, other expenses are part of the picture and must be controlled to manage the “bottom line.”Ĭontrollable expenses adjust as a result of managerial decisions. Those foodservice operations in non-profit settings may not pay occupancy expenses and taxes, but they may have expenses considered “indirect” costs or other similar categories. may not follow the Uniform System of Accounts for Restaurants, but all segments in the industry have some accounting system that separates food & beverage, labor and “other” expenses. On-site foodservice operations, such as those in education, healthcare, etc. However, restaurants have customized lists that suit the nature of their operations. A detailed list of Other Expenses line items is presented in the list below. The Other Expenses category regroups all expenses that do not directly relate to Cost of Goods Sold and Employee Payroll & Benefits. subtract Occupancy & Depreciation Expenses.The Uniform System advocates the following presentation for the Statement of Profit and Loss or “Income Statement” (Other Expenses are highlighted): Other Expenses are categorized as controllable or non-controllable. The Uniform System of Accounts for Restaurants published by the National Restaurant Association provides a standardized account classification system that is used by most restaurant operators. Whi ch line items are considered “ Other Expenses ” ? Controllable versus Non-Controllable Expenses.Statement of Profit and Loss or “Income Statement”.Uniform System of Accounts for Restaurants.Describe strategies to control “other expenses”.Distinguish between variable, fixed, mixed, controllable and non-controllable expenses.Explain the sources of “other expenses” and the variations that may result from the ownership structure of a restaurant.Categorize “other expenses” in a typical foodservice operation profit and loss statement.Define “other expenses” or expense items that are not directly related to Food & Beverage or Labor.Managing and Controlling Other Expenses.
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