Who Determines the Size of a Service Charge Imposed on Guests

question 19

Multiple Choice

Who determines the size of a service charge imposed on guests in a food service operation?

• A) Guests
• B) Servers
• C) Managers
• D) Members of the operation's tip pool

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Definitions:

Direct Material Costs

Direct material costs are the expenses for raw materials that can be directly traced to the production of specific goods or services.

Variable Manufacturing Overhead

Costs of manufacturing that vary directly with the level of production, aside from direct labor and materials.

Fixed Manufacturing Overhead

Indirect production costs that remain constant regardless of the volume of production, such as factory rent and salaries of managers.