A Manager at a Local Food Service Establishment Recently Calculated

question 8

Multiple Choice

A manager at a local food service establishment recently calculated her food cost percentage to be 43%. This percentage is:

• A)very high.
• B)sort of low.
• C)can't tell.
• D)high, but not too high.

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Definitions:

Stated Value

An assigned value to no-par value stock by the company for accounting purposes, often used to meet state regulations.

Common Stock

A type of equity security that represents ownership in a corporation, entitling holders to a share of the company's profits and voting rights.

Par Value

The face value of a bond or stock as stated by the issuer.

Paid-in Capital

Paid-in capital represents the funds raised by a company through the sale of stock to shareholders, above the par value of the shares.