where can i found the definition for overhead cost used in food service or preparation?

Answer 1

Your "overhead" is going to be every cost of selling a product outside of the cost of the product itself.

To make money in the food service business, your prices must include money to cover three things:
1) Product cost
2) Overhead cost
3) Profit

The money charged for a product above the product cost is called the "gross profit". The gross profit must exceed the overhead cost plus the profit for your business to make money.

Components in your overhead include your labor and your expenses. Your expenses include every cost of running your business. Some accounting systems and profit & loss statements list labor within the expenses, some list it separate. That is only a matter of preference.

If you would like a list of expense categories based on the National Restaurant Associations suggested list of accounts for restaurants, feel free to download a sample budgeting tool from my website. Here is a direct link to that tool: http://www.bodellconsulting.com/Samples/Spreadsheets/Profit%20&%20Loss%20Budget%20Blank%20-%20Year.xls

Brandon O'Dell
O'Dell Consulting
Restaurants / Retail / Bars
[phone]
[e-mail]
http://www.bodellconsulting.com

Answer 2

the general, fixed cost of running a business, as rent, lighting, and heating expenses, which cannot be charged or attributed to a specific product or part of the work operation.
2. Accounting.that part of manufacturing costs for which cost per unit produced is not readily assignable.

Answer 3

from food technologists