Hello all, I am working on a project at my place of employment, and I am hoping that you all can help me. I'm looking for the equation you use to determine the food cost in your operation. I work in a retail operation, and I am trying to determine our true food cost. We incur alot of loss and we currently are running on the following formula: Beginning Inventory+Purchase-Ending Inventory=Food Cost (in $). This number is divide by our total sales for the period. I am curious if we could get a more accurate food cost percentage since I have alot of items costed into my food cost at the retail price. Thanks in advance.