Prior to Accounting for Product Transfers, a Manager Calculates Her

Multiple Choice

Prior to accounting for product transfers, a manager calculates her food cost as 32.3% and her beverage cost as 22.5%. Total transfers from her kitchen to the bar equal $1,000 and total transfers from the bar to the kitchen equal $500. After these transfers have been made

A) both the food and beverage cost % will increase.
B) the food cost % will decrease and the beverage cost % will increase.
C) the food cost % will increase and the beverage cost % will decrease.
D) both the food and beverage cost % will decrease.