Use of the microcomputer to determine direct costs of menu items

Recent developments brought about by the government's prospective payment system as well as by new restrictions on hospitalization imposed by private insurance companies are placing greater emphasis on cost-containment measures within hospital foodservice systems. The research reported in this article focuses upon the development of a microcomputer technique that produces direct (labor and ingredient) cost information on menu items. Such information can assist foodservice directors in identifying and controlling costs associated with their current menu offerings. In addition, this information can assist in planning and decision making for future menu planning efforts as well as in make-or-buy decisions.