Cost Control Quiz

What is revenue in the context of cost control?

• Income from sales before expenses are subtracted

• Total expenses incurred

• Net profit after all costs

• Amount spent on purchasing products

Which of the following is considered a cost in cost control?

• Income from sales

• Expenses incurred

• Net revenue

• Profit margin

What is a potential consequence for a business if its costs are higher than its sales?

• Increased profits

• Business losing money

• Expansion opportunities

• Improved market share

What is one method of cost control mentioned in the document?

• Increase advertising

• Hire more employees

• Manage spending

• Raise prices

What happens to a company if costs are not controlled according to the diagram?

• The company will earn more money.

• The company will lose money and may go out of business.

• The company will neither make nor lose money.

• The company will successfully control costs.

Which of the following is NOT one of the four main categories of costs?

• Product or food costs

• Beverage costs

• Labor costs

• Marketing costs

What category of costs includes expenses related to employee wages?

• Product or food costs

• Beverage costs

• Labor costs

• Overhead costs

Which category of costs would include expenses for utilities and rent?

• Product or food costs

• Beverage costs

• Labor costs

• Overhead costs

Which of the following is considered a controllable cost?

• Rent costs

• Food costs

• Insurance costs

• Utility costs

When do controllable costs typically incur?

• When equipment is purchased

• When meals or services are provided

• When taxes are paid

• When loans are taken