COGs
What does COGs Mean?
Cost Of GOOD Sold
What Page Can you Find Labor on the P&L?
Bottom Half Of page 1 and top portion of page 2
Is COGS part of the Controllables
Its Not part of the controllables category but we can manage out food waste
Where can I find advertising on the P&L what Page?
Bottom of page 2 and top part of page 3
What impacts my CP the most ?
Prime cost
What Page Can you Find COGs On in the P&L?
Page 1
what section is labor on in the P&L?
3rd Section
What page can you find the controllable on the P&L ?
Page 2
YES or NO is Grand Opening part or advertising?
Yes
When you share about your CP, do you share the dollar amount or the percentage? Why?
Percentage , because every store’s sales volume are different and percentage is consistent, out of 100%.
Is this a big expense for the company?
Yes COGS is the largest Expense.
What is the Total labor $ equation?
(Direct Labor $) + (Management Labor $) + (Taxes & Benefits)
What is Controllable?
The things we can Control.
Media is paperless is it an expense for advertising?
Yes
What is the formula for $CP?
$CP= NET SALES -COGS -TOTAL LABOR -CONTROLLABLES -ADVERTISING
What is the equation for COGS $
Beginning Inventory + Purchase +/- Transfers - Ending Inventory.
What are the three major components of Labor?
Direct Labor
Management Labor
Taxes And Benefits
Are we able to manage controllable better?
yes we can for expenses like water and electricity
Is advertising a prime cost ?
No
What is the formula for CP%?
CP%= CONTROLLABLE PROFIT$/ NET SALES
Then x 100
How Do you Calculate Cogs%?
COGS $ / Net Sales $
The sum of COGS and Labor Cost are often refered to as?
Prime Cost
What makes up controllables?
Water, Gas, Electricity, third party delivery fees, Waste disposal, repairs, Restaurant expenses
Advertising impacts my fixed cost ?
No
Your
COGS: $37,500
TOTAL LABOR: $27,750
CONTROLLABLES: $7,500
RENT: $12,000
ADVERTISING: $500
NET SALES: $115,000
What is the $CP?
What is the CP%?
$41,740
36.29%