Prior to Accounting for Product Transfers, a Manager Calculates Her

question 26

Multiple Choice

Prior to accounting for product transfers, a manager calculates her food cost as 32.3% and her beverage cost as 22.5%. Total transfers from her kitchen to the bar equal $1,000 and total transfers from the bar to the kitchen equal $500. After these transfers have been made

• A) both the food and beverage cost % will increase.
• B) the food cost % will decrease and the beverage cost % will increase.
• C) the food cost % will increase and the beverage cost % will decrease.
• D) both the food and beverage cost % will decrease.

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Kin

Family members or relatives, often connected by blood, marriage, or adoption.

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The legal, social, or ethical principles of freedom or entitlements (rights) and the corresponding duties or responsibilities (obligations).

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A youth organization in the United States that aims to develop character, citizenship, and personal fitness among young people through a variety of outdoor activities and educational programs.

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