If the Head of a Hotel's Food and Beverage Operation

question 37

Multiple Choice

If the head of a hotel's food and beverage operation is held accountable for revenues and costs, the food and beverage operation would be considered a (n) :

• A) cost center.
• B) revenue center.
• C) profit center.
• D) investment center.
• E) contribution center.

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Definitions:

Price Changes

Variations in the cost of goods or services in the market over a period of time, influenced by factors such as supply and demand.

Income Elasticity

A measure of how much the demand for a good or service changes in response to changes in consumer income.

Inferior Good

A type of good whose demand decreases when consumers' income increases, opposite to normal goods.

Demand Elastic

A measure of how sensitive the quantity demanded of a good or service is to a change in its price.