What a recipe costing is, and why it usually fails
A recipe costing is a dish’s cost sheet: which ingredients go in, in what quantity, what each one costs and, from that, what a portion costs and what margin it leaves at menu price.
In most kitchens it lives in a spreadsheet with the price from the last order or the supplier’s list price. And that is the problem: the oil you are using today was bought three weeks ago at a different price, the supplier put hake up on Monday and nobody touched the sheet. The margin on the costing and the margin in the P&L stop matching, and you cannot tell which dish the difference went into.