One of the Tools That Is Used to Control the Cost

question 38

True/False

One of the tools that is used to control the cost and use of food is the profit and loss statement, the purpose of which is to show management the exact cost and amount of food used on any given day.

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Definitions:

Outstanding Checks

Checks that have been issued by a company but have not yet been cashed or cleared by the bank.

Petty Cash

A small amount of cash on hand used for minor or incidental expenses within a business.

Normal Balance

The side (debit or credit) of an account that is expected to have a greater balance based on standard accounting practices.

Asset

Resources owned or controlled by a business or individual that are expected to produce economic value or future benefits.