How Many Different Menu Item Classifications Will Result If Managers

question 22

Multiple Choice

How many different menu item classifications will result if managers evaluate their menu items' popularity and food cost percentages by using a two factor matrix analysis?

• A) 2
• B) 4
• C) 6
• D) 8

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Definitions:

Direct Labor-Hour

A measure of the labor time directly involved in producing goods, often used to allocate labor costs to products.

Variable Manufacturing Overhead

Costs in manufacturing that vary with the level of production output, such as utilities and indirect materials.

Selling and Administrative Expense Budget

A financial plan that estimates the costs associated with selling products and managing the business, including marketing, salaries, and office expenses.

Fixed Expenses

Costs that do not fluctuate with the level of production or sales, such as rent, insurance, and salaries.