To which major category of restaurant expenses does the expense for "uniforms" and "dry cleaning" belong to ?

Question

BlackTom AI · Accepted Answer

When analyzing restaurant expense classifications, it helps to categorize costs by their nature and relation to core operations.
Option a: 'Repairs and maintenance' covers upkeep of existing assets and facilities. Uniforms and dry cleaning are not primarily about repairing or maintaining assets, so this label is not a best fit.
Option b: 'Equipment' would refer to tangible items like ovens, refrigerators, or smallwares used in service. Uniforms and dry cleaning are not equipment purchases or depreciation costs, so this option mislabels the nature of these expenses.
Option c: 'Direct operating expenses' includes costs that are directly tied to the daily operation of the restaurant but not included in cost of sales. Uniforms and dry cleaning are ongoing operating costs incurred to run the restaurant and support frontline staff, qualifying them as direct operating expenses.
Option d: 'Cost of sales' represents the direct costs tied to producing the goods sold to customers, such as food and beverage ingredients and related direct production costs. Uniforms and dry cleaning do not constitute the cost of the goods sold themselves, so this option is not appropriate.
In summary, uniforms and dry cleaning are ongoing operating costs that enable daily operations but are not direct goods sold, aligning them with direct operating expenses rather than equipment, repairs, or cost of sales.

251_1HO004_Accounting I

To which major category of restaurant expenses does the expense for "uniforms" and "dry cleaning" belong to ?

View Explanation

Log in for full answers

Similar Questions

Expenses can be amounts paid to owners

Activity 1.6 e) Identify the expenses that are specific to a BIKE STORE as opposed to a GROCERY STORE. Select ALL that apply

Puff’s Trucking Company paid $90 for an oil change on a truck. Puff's should report this expenditure as a:

The salary and benefit costs of employees are a part of ...

How will Freight Out be classified on an Income Statement?

How will Freight Out be classified on an Income Statement?

How are expenses which are not Cost of Goods Sold expenses classified on an Income Statment?

How will Freight Out be classified on an Income Statement?

More Practical Tools for Students Powered by AI Study Helper

Homework AI Solver

Stylized AI Paper Writer

Plagiarism Checker Assistant

Citation AI Academic Writing Tool

In-Class Translation Assistant

AI Note Generator

AI Quiz Answers

Past Exam Questions from University Test Bank

Smart Practice Assistant

Adaptive Practice

Making Your Study Simpler