Which Among the Following Strategies Is Used by Fast-Food Restaurants

question 36

Multiple Choice

Which among the following strategies is used by fast-food restaurants to reduce costs?

• A) Increase advertising via the Internet.
• B) Allowing the customer to play an active part in the service process.
• C) Increase prices.
• D) Increasing menu items to cater to varying tastes.

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Definitions:

After-Tax Discount Rate

The interest rate used in discounted cash flow analysis that accounts for the impact of taxes on the rate of return.

Income Tax Rate

The share of an individual's earnings that is paid to the government as a tax.

Straight-Line Depreciation

Straight-line depreciation is a method of calculating the depreciation expense of an asset evenly over its useful life.

Straight-Line Depreciation

A technique for determining an asset's depreciation, presuming that the asset will depreciate by a consistent value annually throughout its projected useful life.