Explain the Term Variable Costs and Provide Three Examples of Variable

question 41

Essay

Explain the term variable costs and provide three examples of variable costs incurred by a restaurant.

---

Definitions:

Fiduciary Duty

Obligates an individual or organization to act in the best interest of another party, such as a trustee for beneficiaries.

Good Faith

The honest intent to act without taking an unfair advantage over another party in a transaction.

Security Interest

A legal claim or lien on property, both personal and real, granted to secure the performance of an obligation, usually the repayment of a debt.

Future Inventory

Goods or materials that a company plans to acquire or produce for sale in the future.