Menu Costs Refer to the Increased Cost Of

question 156

Multiple Choice

Menu costs refer to the increased cost of:

• A) food in a time of inflation.
• B) eating out when inflation increases.
• C) changing listed prices.
• D) the minimum wage.

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Definitions:

Fixed Costs

Costs that do not change with the amount of goods or services produced, such as rent, salaries, or insurance.

Accounting Profit

Profits as shown on a company’s financial statements. Accounting profit does not necessarily correspond to real or economic profit.

Variable Costs

Costs that vary directly with the level of production or a company's output, such as materials and labor.

Fixed Costs

Costs that do not change with the level of production or sales, such as rent, salaries, and insurance premiums.