• When the number of clients decreases, such as when the census in a hospital goes down significantly, departments are expected to decrease labor hours. This can be done with a calculation of daily labor hours to census.
• Cost containment starts with a clear view of what is happening in the operation. Monthly operating statements show managers how their operation is doing financially. These statements show how actual costs compare with budgeted amounts, which is called the variance. The variance points out areas of concern to managers, so they can make timely adjustments to correct the situation
• The chapter lists specific techniques for controlling costs in a foodservice operation, addressing purchasing, menus, labor, receiving and storage, food production and service, and non- food supplies.