COST OF

PRODUCTION
Important things needed in determining food
cost:
• Standard Recipe
• Ingredients costs
• Recipe cost sheet
 • Is the difference between how much an item costs you and how

Markupmuch you sell it; thus, it is the profit you get from selling price
For example

• Janna is starting a small banana cue business. After computing the total food cost, she determined
that each banana cue costs her Php.10.00. She decided to sell the banana cue at Php. 15.00 each.

15.00-10.00= 5.00

5 pesos markup a piece