The Capacity of a Restaurant Would Be The

question 7

Multiple Choice

The capacity of a restaurant would be the:

• A)average number of customers that visit the restaurant on weekends.
• B)total number of customers who have visited the restaurant since its establishment.
• C)average number of employees who work in the restaurant on a normal day.
• D)maximum number of customers who can be effectively served at any one particular time.
• E)minimum operating cost of the restaurant during a workweek

---

Definitions:

Period Cost

Costs that are expensed in the period in which they are incurred, typically including selling, administrative, and other non-production costs.

Net Operating Income

A financial metric that calculates a company's profitability by subtracting operating expenses from its operating revenues.

Break-Even

The point at which total costs and total revenue are equal, meaning there is no profit or loss.

Sales Dollars

The total amount of revenue generated from the sale of goods or services, measured in dollars.