EP price is defined as which of the following?

EP price is defined as which of the following?

• A. Price of items BEFORE any trim or waste considered
• B. Price of packaging
• C. Price charged to customers
• D. Price of an item After all trim and waste has been taken account

Answer: (D)

The main idea here is how cost is tied to usable food. EP price is the cost per edible portion after accounting for trim and waste. It represents how much the usable part of the item actually costs you, not just what you paid for it before any trimming or waste. To see why this is the best description, think of purchasing something that isn’t used in its full form. If you buy a roast for a certain price and, after trimming, only a portion of it is edible, you divide the total purchase cost by the edible amount to get the price per edible unit. For example, if a roast costs $25 for 5 pounds, but trimming yields 3.5 pounds of edible meat, the EP price is $25 divided by 3.5 pounds, about $7.14 per edible pound. This shows the true cost of the usable product you’ll serve. Other options describe different concepts: one is the price before trimming (the item’s purchase price), another is the packaging cost (a separate expense), and another is the price charged to customers (selling price), none of which reflect the cost per edible portion after waste is considered.

The main idea here is how cost is tied to usable food. EP price is the cost per edible portion after accounting for trim and waste. It represents how much the usable part of the item actually costs you, not just what you paid for it before any trimming or waste.

To see why this is the best description, think of purchasing something that isn’t used in its full form. If you buy a roast for a certain price and, after trimming, only a portion of it is edible, you divide the total purchase cost by the edible amount to get the price per edible unit. For example, if a roast costs $25 for 5 pounds, but trimming yields 3.5 pounds of edible meat, the EP price is $25 divided by 3.5 pounds, about $7.14 per edible pound. This shows the true cost of the usable product you’ll serve.

Other options describe different concepts: one is the price before trimming (the item’s purchase price), another is the packaging cost (a separate expense), and another is the price charged to customers (selling price), none of which reflect the cost per edible portion after waste is considered.