A manager's restaurant uses paper napkins. What type of "Other expense" is the amount paid for the napkins?

Question

Quizplus · Accepted Answer

The cost of paper napkins in a restaurant is considered a controllable, variable expense. This is because the manager can control the amount spent on napkins by managing their use and purchase, and the expense varies with the level of business activity (e.g., more customers mean more napkins used).

A Manager's Restaurant Uses Paper Napkins