Which statement describes plate cost?

Which statement describes plate cost?

• A. Cost per plate
• B. Plate markup
• C. Total sum of product costs included in a single meal
• D. Price per serving

Answer: (C)

Plate cost is the total sum of all food costs for the ingredients that go into one plated meal. It represents the direct cost of producing that dish, before any labor, overhead, or other expenses are added. This total helps determine profitability because you compare it to the menu price and the target food-cost percentage to see if the dish meets financial goals. It’s different from the price per serving (what customers pay) and from markup (the amount added to cost to reach a selling price). In short, plate cost is the ingredient cost for a single dish, summed across all components.

Plate cost is the total sum of all food costs for the ingredients that go into one plated meal. It represents the direct cost of producing that dish, before any labor, overhead, or other expenses are added. This total helps determine profitability because you compare it to the menu price and the target food-cost percentage to see if the dish meets financial goals. It’s different from the price per serving (what customers pay) and from markup (the amount added to cost to reach a selling price). In short, plate cost is the ingredient cost for a single dish, summed across all components.