In the seven-step recipe cost card process, what is Step 4?

In the seven-step recipe cost card process, what is Step 4?

• A. Convert the cost of the invoice unit to the cost of the recipe unit
• B. Copy of ingredients from standard recipe card to cost card
• C. Add the cost of all ingredients
• D. Divide total recipe cost by the Number of portions made

Answer: (A)

The main idea is to express each ingredient’s cost in the unit used in the recipe so you can add them up accurately. In a seven-step cost card process, you first identify how you purchase the ingredient (invoice unit) and then convert that price to the unit you actually use in the recipe (recipe unit). This alignment lets you multiply the cost per recipe unit by the amount of that ingredient used, giving you the true ingredient cost for the card. For example, if onions cost $25 for a 50-pound bag, the price per pound is $0.50. If your recipe calls for 6 ounces of onion, convert 6 ounces to pounds (0.75? No, 6 ounces is 0.375 pounds). Multiply $0.50 by 0.375 to get about $0.1875 for that amount of onion. That per-recipe-unit cost is what you record, and you do this for all ingredients. Once you have all costs in the recipe units, you add them to get the total recipe cost, and you can then divide by the number of portions if you need cost per portion.

The main idea is to express each ingredient’s cost in the unit used in the recipe so you can add them up accurately. In a seven-step cost card process, you first identify how you purchase the ingredient (invoice unit) and then convert that price to the unit you actually use in the recipe (recipe unit). This alignment lets you multiply the cost per recipe unit by the amount of that ingredient used, giving you the true ingredient cost for the card.

For example, if onions cost $25 for a 50-pound bag, the price per pound is $0.50. If your recipe calls for 6 ounces of onion, convert 6 ounces to pounds (0.75? No, 6 ounces is 0.375 pounds). Multiply $0.50 by 0.375 to get about $0.1875 for that amount of onion. That per-recipe-unit cost is what you record, and you do this for all ingredients. Once you have all costs in the recipe units, you add them to get the total recipe cost, and you can then divide by the number of portions if you need cost per portion.