Java Joe Operates a Chain of Coffee Shops

question 24

Multiple Choice

Java Joe operates a chain of coffee shops.The company pays rent of $20,000 per year for each shop.Supplies (napkins,bags,and condiments) are purchased as needed.The manager of each shop is paid a salary of $3,000 per month,and all other employees are paid on an hourly basis.Relative to the number of customers for a shop,the cost of supplies is which kind of cost?

• A) Fixed cost
• B) Variable cost
• C) Mixed cost
• D) Relevant cost

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Definitions:

Expert Power

The influence a person has over others due to their expertise, skills, or knowledge.

Industrial

Related to the production and manufacturing of goods in an organized and systematic manner for economic purposes.

Reward Power

The capacity to influence others by controlling the allocation of rewards valued by them, effectively motivating or encouraging specific behaviors.

Negative Sanctions

Punishments or penalties imposed to correct or deter undesirable behavior in an organization.