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Lily Caf operates a chain of coffee shops. The company pays rent of $20,000 per year for each shop. Supplies (napkins, bags, and condiments) are
Lily Caf operates a chain of coffee shops. The company pays rent of $20,000 per year for each shop. Supplies (napkins, bags, and condiments) are purchased as needed. The manager of each shop is paid a salary of $3,000 per month, and all other employees are paid on an hourly basis. Relative to the number of customers for a shop, the cost of supplies is which kind of cost?
A.
Fixed cost.
B.
Variable cost.
C.
Mixed cost.
D.
Relevant cost.
Lily Cate operates a chain of colfee shops. The company pays rent of $20,000 per year for ecoh shop. Sucples (napkins, begs, and condiments) are purchased as needed, The manager of Fand osot: 1. Variabio cont. C.Mind cost. D. Relevant cone
Lily Caf operates a chain of coffee shops. The company pays rent of $20,000 per year for each shop. Supplies (napkins, bags, and condiments) are purchased as needed. The manager of each shop is paid a salary of $3,000 per month, and all other employees are paid on an hourly basis. Relative to the number of customers for a shop, the cost of supplies is which kind of cost?
A.
Fixed cost.
B.
Variable cost.
C.
Mixed cost.
D.
Relevant cost.
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