Year After Year, the As­You­Like­It Bistro Handles a Large Volume

Multiple Choice

Year after year, the As­You­Like­It Bistro handles a large volume of business at lunch. The manager attributes the operation's success to radical menu changes every three months. Many of the new menu items result from suggestions made by guests. Which of the following sources of information offers the manager the most reliable basis for developing cost standards?

A) industry averages
B) past financial statements
C) operating budgets
D) in­house standard costs