Commodity Turnover
What does commodity turnover measure in a kitchen or food establishment?
How quickly food inventory is used, sold, and replaced within a specific timeframe.
Name two examples of non-perishable foods that can sit on a shelf for months without refrigeration.
Canned goods, dry pasta, flour, sugar, salt, or dried beans.
What purchasing method involves buying goods in small quantities directly from a supermarket?
Retail purchasing.
What is the term for indirect, overlooked expenses like trim and prep loss that don't show up on a grocery receipt?
Hidden costs.
Why is a high turnover rate good for perishable foods like milk and fresh vegetables?
It keeps food fresh, reduces spoilage, and stops money from sitting unused on shelves.
What key characteristic makes perishable foods spoil quickly if they are not refrigerated or frozen?
Their high moisture and nutrient content (which allows bacteria to grow rapidly).
What is the main advantage of bulk or wholesale purchasing compared to retail purchasing?
It lowers the cost per unit or item by buying in larger quantities.
What is the difference between As-Purchased (AP) Cost and Edible Portion (EP) Cost?
AP cost is what you pay for the item as bought (with bones/peel). EP cost is the actual cost of the usable food after trimming or peeling away waste.
If a kitchen has a Cost of Goods Sold (COGS) of $2,000 and an Average Inventory of $500, what is its turnover rate?
4 (Calculated by dividing $2,000 by $500).
If a restaurant kitchen orders a large bulk supply of imported spices that sits on the shelf for months, is this an example of high or low turnover, and what risk does it cause?
Low turnover. It ties up money and increases the risk of items expiring or going to waste.
Give an example of a bulk purchase versus a retail purchase using flour.
Buying a small bag of flour from a store is retail; buying one giant 50 lb sack of flour at once is bulk.
If a 1 kg bag of flour costs $400 and your recipe calls for 500 grams, what is the ingredient cost for the flour in that recipe?
$200 (since 500 g is half of 1 kg).