Exam 8: Controlling Other Expenses

What is a manager's "Other expense" Cost per guest for marketing, if sales in the manager's operation in a month were $90,000, 3,000 guests were served, and marketing costs for the month were $1,500?

What type of "Other expense" is an operation's usage of kilowatt hours (kWh)?

To calculate their "Other expense" cost percentage and their "Other expense" cost per guest, managers must know their total sales, the amount of the other expense, and the number of guests they have served.

A variable "Other expense" increases as sales volume increases and decreases as sales volume decreases.

How frequently should contracts for services such as HVAC maintenance and grounds keeping be put out for bid?

A manager pays $5,000 per month plus 2% of total monthly sales to the owner of the building that houses the manager's restaurant. How much will the manager have to pay to the building's owner in a month in which the total sales for the restaurant are $80,000?

What is an example of a controllable fixed expense in a foodservice operation that also serves alcoholic beverages?

As sales volume increases, an operation's mixed-expense percentage decreases while the total dollar amount paid for the mixed expense increases.

In most cases performing routine maintenance on mechanical equipment prolongs its life but increases its total operational costs.

A cost that changes in direct relationship to changes in an operation's sales volume is considered to be a

The cost of utilities in a foodservice operation is a non-controllable other expense.

A manager's restaurant uses paper napkins. What type of "Other expense" is the amount paid for the napkins?

What is an example of an occupancy cost?

On what financial document will managers report their operations' controllable and non-controllable other expenses?

Other expenses typically equal less than five percent of a foodservice operation's total sales volume.