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Which of the following would be a variable cost for a restaurant? A - OCR - GCSE Business - Question 10 - 2022 - Paper 1
Question 10
Which of the following would be a variable cost for a restaurant? A. Advertising fees B. Buildings insurance C. Chef's salary D. Fruit and vegetables Your answer _... show full transcript
Worked Solution & Example Answer:Which of the following would be a variable cost for a restaurant? A - OCR - GCSE Business - Question 10 - 2022 - Paper 1
Step 1
Which of the following would be a variable cost for a restaurant?
Answer
To determine which option is a variable cost for a restaurant, let's define variable costs. Variable costs change in direct proportion to the quantity of goods produced or services provided. In the context of a restaurant:
- A. Advertising fees: Typically a fixed contract, so not variable.
- B. Buildings insurance: Generally a fixed cost, paid regardless of sales or production volume.
- C. Chef's salary: Usually a fixed cost as it is paid regardless of how many meals are served.
- D. Fruit and vegetables: These costs fluctuate based on how much the restaurant sells; the more meals served, the more ingredients needed.
Thus, the correct choice for a variable cost is D. Fruit and vegetables.