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Desmond Owns a Restaurant and Is Considering Buying His Desserts

Question 172

Multiple Choice

Desmond owns a restaurant and is considering buying his desserts from a local bakery rather than continuing to hire a pastry chef for this purpose.When he performs an incremental analysis,which of the following would be considered an incremental cost?


A) the insurance on the restaurant's building and equipment
B) the head chef's and salad chef's wages
C) the pastry chef's wages
D) the utilities, including the oven costs that are shared with the other chefs, during regular hours of operation

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