David manages a Shoney's restaurant. He is considering staying open later in the evening. For David, the variable costs associated with staying open longer hours will include all of the following EXCEPT
A) ingredients used in preparing food.
B) hours worked by cooks.
C) rent on the restaurant building.
D) energy costs.
E) hours worked by the waiters and waitresses.

Question

Quizplus · Accepted Answer

Rent on the restaurant building is a fixed cost, which means it does not change with the level of production or sales. The other options listed are variable costs that will increase if the restaurant stays open longer in the evening.

David Manages a Shoney's Restaurant