The Uniform System of Accounts for Restaurants Was Developed to Assist

question 12

Multiple Choice

The Uniform System of Accounts for Restaurants was developed to assist

• A)managers with analyzing labor cost.
• B)operators to interpret financial results.
• C)owners in analyzing the success of their investment.
• D)guests in determining whether they would want to dine at the establishment.

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Definitions:

Finished Goods Inventory

Represents the value of products that are completed and ready for sale but have not yet been sold.

Direct Labor

The wages and salaries of employees who are directly involved in the production of goods or rendering of services.

Cash Collections

The process of gathering money that has been received from customers as payment for goods or services.

Cash Balance

The amount of cash or cash equivalents held by a company at a particular point in time.