When Planning a Menu,recommendations Are to First Plan

question 7

Multiple Choice

When planning a menu,recommendations are to first plan:

• A)the appetizer course because those items will be the first the customer receives.
• B)the dessert course because the richness of this course will determine how heavy or light to make the other courses.
• C)the salad and vegetables because many vegetables do not go well with other courses.
• D)the entree course because those items are the most expensive.

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Definitions:

Predetermined Overhead Rate

A rate calculated before the accounting period begins, used to allocate manufacturing overhead costs to products.

Manufacturing Overhead

All indirect costs associated with manufacturing, excluding direct material and direct labor costs, such as utilities and rent for the manufacturing space.

Machine-Hours

A measure of the amount of time machines are used in the production process, used as a basis for allocating manufacturing overhead costs.

Fixed Manufacturing Overhead

Indirect manufacturing costs that remain constant regardless of the level of production, such as salaries of supervisors and rent of the factory building.