In a restaurant, the price of foods and beverages bought under ideal conditions and used as a standard for comparing actual costs is known as:
  1. Benchmark Cost
  2. Future Cost
  3. Projected Cost
  4. Potential Cost
Explanation
ANSWER: D - The potential cost is the price of foods and beverages bought under ideal conditions and used as a standard for comparing actual costs. This calculation can give a good indication of profit or loss in the long run.
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