Chapter 8 Activity Guide

Front

Complete the following definition for the key term: Revenue.

Back

Revenue

Front

Complete the following definition for the key term: Cost control.

Back

Cost control is the process of monitoring and managing expenses to ensure that they do not exceed the budgeted amounts, thereby maximizing profitability and efficiency.

Front

Complete the following definition for the key term: Controllable costs.

Back

Controllable costs are expenses that can be directly influenced or regulated by a specific manager or department within an organization. These costs can be adjusted based on decisions made by the responsible party, allowing for better financial management and accountability.

Front

Complete the following definition for the key term: Overhead costs.

Back

Overhead costs are the ongoing expenses of operating a business that are not directly attributed to creating a product or service. These costs can include rent, utilities, insurance, and salaries of non-production staff.

Front

Complete the following definition for the key term: Fixed/Noncontrollable costs.

Back

Fixed/Noncontrollable costs are expenses that do not change with the level of production or sales. These costs remain constant regardless of the business activity level, making them essential for budgeting and financial planning.

Front

Complete the following definition for the key term: Food costs.

Back

Food costs refer to the total expenses incurred by a business for purchasing food and beverages, including raw ingredients, preparation, and storage costs.

Front

Complete the following definition for the key term: Beverage costs.

Back

Beverage costs refer to the total expenses incurred by a business in purchasing, preparing, and serving beverages to customers. This includes the cost of raw materials, labor, and overhead associated with beverage production and service.

Front

Complete the following definition for the key term: Labor costs.

Back

Labor costs refer to the total expenses incurred by an employer in compensating employees for their work. This includes wages, salaries, benefits, and any other costs associated with hiring and maintaining a workforce.

Front

What is the definition of 'Operating budget'?

Back

A financial plan for the day-to-day operations of a business.

Front

What is the definition of 'Depreciation'?

Back

A method of allocating the cost of a tangible asset over its useful life.