What Employee-Related Expense Category Will Be the Largest in a Typical

question 5

Multiple Choice

What employee-related expense category will be the largest in a typical food service operation?

• A) Labor
• B) Wages
• C) Salaries
• D) Payroll

---

Definitions:

Consigned Goods

Items that are sent by their manufacturer to a third party, but still remain the property of the manufacturer until sold.

Goods in Transit

Items that have been shipped by a seller but have not yet been received by the buyer.

Days' Sales in Inventory

A measure of how quickly inventory is sold and replaced over a period, calculated by dividing the ending inventory by the cost of goods sold and multiplying by 365.

Year 2

Typically refers to the second year in a given time frame or study period, often used in financial analysis, forecasts, or planning scenarios.