EP Cost
Also called: edible portion cost, as-purchased cost, AP cost
What is EP Cost?
EP cost, or edible portion cost, is what an ingredient costs per usable unit after trimming, peeling, deboning and cooking loss — as opposed to AP cost, the as-purchased price you paid the supplier.
Why EP cost matters
Chicken bought at ₹220 per kg with a 70% usable yield has an EP cost of ₹314 per kg. Costing the dish at ₹220 understates it by about 43% — enough to turn a dish you believe is profitable into one that is not.
Where the gap is largest
Ingredients with low or variable yields do the most damage: whole fish, leafy vegetables, bone-in meat and anything that reduces heavily in cooking. These are exactly the ingredients most kitchens cost off the purchase invoice, which is why costing a menu off AP prices quietly destroys margin.
Frequently asked questions
AP cost is what you paid the supplier. EP cost is what the usable portion costs after waste. Menus should be costed on EP.