Desmond Owns a Restaurant and Is Considering Buying His Desserts

question 172

Multiple Choice

Desmond owns a restaurant and is considering buying his desserts from a local bakery rather than continuing to hire a pastry chef for this purpose.When he performs an incremental analysis,which of the following would be considered an incremental cost?

• A)the insurance on the restaurant's building and equipment
• B)the head chef's and salad chef's wages
• C)the pastry chef's wages
• D)the utilities, including the oven costs that are shared with the other chefs, during regular hours of operation

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