Having a food cost percentage of 40% means that:
A)40% of revenue was spent on food.
B)40% of total costs were for food.
C)40% of the cost of the food was wasted.
D)40% of food costs were used for employee meals.

Question

Quizplus · Accepted Answer

Having a food cost percentage of 40% means that for every dollar of revenue earned, 40 cents were spent on the cost of the food. It does not necessarily mean that 40% of total costs were for food, that 40% of the cost of the food was wasted, or that 40% of food costs were used for employee meals.

Having a Food Cost Percentage of 40% Means That