Which statement best defines portion cost?

Which statement best defines portion cost?

• A. Portion cost is the cost per serving
• B. Portion cost is the batch ingredient cost
• C. Food cost equals the batch ingredient cost
• D. They are the same thing

Answer: (A)

Portion cost is the cost per serving. It shows how much the ingredients for one portion cost, determined by dividing the total batch ingredient cost by the number of servings the batch yields. For example, a batch that costs $60 and yields 20 portions has a portion cost of $3 per serving. This per-serving figure is essential for pricing and controlling food costs, because it translates batch expenses into the cost attached to each plate. The batch ingredient cost is the total price for the whole batch, not per serving, so it isn’t the same as portion cost. They are not the same thing.

Portion cost is the cost per serving. It shows how much the ingredients for one portion cost, determined by dividing the total batch ingredient cost by the number of servings the batch yields. For example, a batch that costs $60 and yields 20 portions has a portion cost of $3 per serving. This per-serving figure is essential for pricing and controlling food costs, because it translates batch expenses into the cost attached to each plate. The batch ingredient cost is the total price for the whole batch, not per serving, so it isn’t the same as portion cost. They are not the same thing.