Taste of the Town,Inc.operates a gourmet sandwich shop.The company orders bread,cold cuts,and produce several times a week.If the cost of these items remains constant per customer served,the cost is said to be:

Question

Quizplus · Accepted Answer

Since the cost of the ingredients (bread, cold cuts, produce) varies based on the number of customers served, it is considered a variable cost. If the cost of these items remained constant regardless of the number of customers served, it would be considered a fixed cost.