A Server in a Fine Restaurant Has the Authority to Give

question 45

Multiple Choice

A server in a fine restaurant has the authority to give a complimentary dessert to a dissatisfied customer when the customer complains about the meal or service.This is an example of

• A) benchmarking.
• B) individualism.
• C) good training.
• D) empowerment.
• E) localized authority.

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Definitions:

Cost Of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including both materials and labor expenses.

Inventory

Items held by a company for sale in the ordinary course of business or to be used in the production of goods sold.

Contra-Revenue Accounts

Accounts used to record reductions in gross revenue, such as sales returns, allowances, and discounts, to arrive at net revenue.

Gross Profit

The financial metric calculated by subtracting the cost of goods sold from total sales revenue, representing the efficiency of a company in managing its production and sales.