Exam 11: Controlling Costs

Price elasticity means that the demand is sensitive to changes in price.

What is an example of semi- variable costs?

Because inventories can vary from ____________to____________ , a physical inventory should always be taken on the same day of the week.

List five controllable expenses.

The restaurant must balance the need for it to have sufficient supplies on hand so that it will not run out of items with what fact?

Income before Rent and Other Occupation Costs is obtained by subtracting total____________from total____________ .

Explain what it means to analyze a statement of income systematically and how one goes about it, from the first step to the last.

List and describe the four methods of prioritizing capital projects.

The current ratio measures how strong the business is in its ability to do what?

The____________ has been developed by the accounting firm of Laventhol and Horwath and accepted by the National Restaurant Association as a blueprint for categorizing revenues and costs and laying out a statement of income.

The ____________shows the financial situation for the business at a particular point in time, usually December 31.

What is NOT a major short- term liability?

The two fundamental accounting statements are the____________ and the____________ .

Give a brief explanation of the various parts of a break- even chart.

The term ____________refers to the profit kept within the business.

Most restaurants choose to take a physical inventory once a month.

____________is a rate of return that equalizes the present value of the return and the investment.

Fixed assets are those items that have a life longer than a year.

"Planning of expenditures whose returns are expected to extend beyond one year" is the definition of what term?

Depreciation is a non- cash, tax- deductible expense.