The Number of Customers Who Dine at Eat and Den,a

question 54

Multiple Choice

The number of customers who dine at Eat and Den,a restaurant,varies on weekdays and weekends.On days when customer traffic is less,Eat and Den incurs losses because the food prepared on one day will not be fresh the next day.In this scenario,which of the following characteristics of services is the reason for Eat and Den's loss of revenue?

• A) Heterogeneity
• B) Perishability
• C) Intangibility
• D) Variability

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Definitions:

Cost of Selling Goods

The total expense directly incurred from the production or purchase of items sold by a business.

Cost of Goods Sold

An expense recorded on the income statement that reflects the total cost of producing or purchasing the goods that a company has sold during a specific period.

Cost of Goods Sold

Represents the total cost of all goods that were sold over a specific period, including the costs associated with production or purchase.

Gross Profit

The difference between revenue and the cost of goods sold (COGS), indicating the efficiency of a company in using its labor and supplies.