Question

What are examples of Variable Restaurant Expenses?

A. Office supplies, marketing and manager salary.
B. Indirect labor and comps and returns.
C. Food, smallwares and labor costs.
D. Tuition reimbursement, bonus and occupancy expense.

Answer 1

Variable restaurant expenses include food costs, smallwares, and labor costs.

Step-by-step explanation:

Variable costs are the costs of the variable inputs (e.g., labor) that increase or decrease with output. For a restaurant, examples of variable expenses would include food costs, smallwares (e.g., utensils, napkins), and labor costs. Since producing more food items would require more raw materials and production staff, these costs would vary depending on the level of production or sales.