Cost Control Quiz

What does cost refer to in the context of business?

• A method of cost control

• A type of fixed cost

• An increase in sales volume

• A reduction in the value of an asset

In the food and beverage business, how is cost defined?

• The value of assets owned

• The total revenue generated

• The expense incurred for goods or services

• The profit made from sales

When is the cost of a piece of meat incurred?

• When it is ordered

• When it is cooked, served, or spoiled

• When it is purchased

• When it is stored

What are fixed costs?

• Costs that vary with sales volume

• Costs that can be easily controlled

• Costs that remain constant regardless of sales volume

• Costs that are always high

Which of the following is an example of a fixed cost?

• Labor costs

• Food costs

• Insurance premiums

• Utility bills

What are variable costs?

• Costs that do not change with sales volume

• Costs that are always fixed

• Costs that can be ignored

• Costs that are directly related to business volume

Which of the following is a directly variable cost?

• Salaries of fixed personnel

• Depreciation

• Rent

• Cost of food sold

What is a semivariable cost?

• A cost that cannot be controlled

• A cost that has both fixed and variable elements

• A cost that is always variable

• A cost that is always fixed

What are controllable costs?

• Costs that cannot be changed in the short term

• Costs that are always variable

• Costs that can be changed in the short term

• Costs that are always fixed

Which of the following is a noncontrollable cost?

• Food costs

• Labor costs

• Rent

• Variable labor costs