A food service operation experienced a 10% decline in volume this month when compared to the previous month. If the reduction in volume was anticipated and scheduled for properly, the operation's

Question

Quizplus · Accepted Answer

Fixed costs remain constant regardless of volume, so their percentage of total costs will increase if volume decreases. Variable costs change with volume, so if the operation adjusted properly, the variable cost percentage would remain constant.

A Food Service Operation Experienced a 10% Decline in Volume