Chapter 9 - Analyzing results using the income chapter presents the following content: Introduction to financial analysis, uniform system of accounts, income statement (USAR format), analysis of sales/volume, analysis of food expense. | Chapter 9 Analyzing Results Using The Income Statement 1 Main Ideas Introduction to Financial Analysis Uniform System of Accounts Income Statement (USAR format) Analysis of Sales/Volume Analysis of Food Expense 2 Main Ideas (cont.) Analysis of Beverage Expense Analysis of Labor Expense Analysis of Other Expenses Analysis of Profits Technology Tools 3 Introduction to Financial Analysis Part of management’s job is to sift through information and select for analysis those numbers that can shed light on exactly what is happening in their operations. Among other things, they will want to determine: How much money did we take in? How much money did we spend? How much profit did we make? 4 Introduction to Financial Analysis Documenting and analyzing sales, expenses, and profits is sometimes called cost accounting. However, that same activity is more appropriately described as managerial accounting, to reflect the importance managers should place on the process. 5 Introduction to Financial Analysis Bookkeeping is the process of recording and summarizing financial data. Managerial accounting is the analysis of recorded and summarized data. Effective managerial accounting decisions rely upon accurate bookkeeping. 6 Introduction to Financial Analysis Financial reports related to the operation of a foodservice facility can be of interest to: Management Stockholders Owners Creditors Governmental agencies The general public 7 Introduction to Financial Analysis Managers do not have to be a Certified Management Accountant (CMA) or a Certified Public Accountant (CPA) to analyze data related to foodservice revenue and expense. In 2002, the United States Congress passed the Sarbanes-Oxley Act (SOX). This law imposes criminal penalties for those found to have committed accounting fraud. 8 Uniform System of Accounts The National Restaurant Association has developed the Uniform System of Accounts for Restaurants (USAR). The USAR seeks to provide a consistent and clear manner in which . | Chapter 9 Analyzing Results Using The Income Statement 1 Main Ideas Introduction to Financial Analysis Uniform System of Accounts Income Statement (USAR format) Analysis of Sales/Volume Analysis of Food Expense 2 Main Ideas (cont.) Analysis of Beverage Expense Analysis of Labor Expense Analysis of Other Expenses Analysis of Profits Technology Tools 3 Introduction to Financial Analysis Part of management’s job is to sift through information and select for analysis those numbers that can shed light on exactly what is happening in their operations. Among other things, they will want to determine: How much money did we take in? How much money did we spend? How much profit did we make? 4 Introduction to Financial Analysis Documenting and analyzing sales, expenses, and profits is sometimes called cost accounting. However, that same activity is more appropriately described as managerial accounting, to reflect the importance managers should place on the process. 5 Introduction to Financial .
