Red Seal Cook

Category - Common Occupational Skills

Prime cost pricing refers to what?
  1. The total raw food cost plus direct labour
  2. The raw food cost
  3. The costs associated with running the business before food cost is taken into account
  4. The overhead and raw food cost combined, before labour is factored
Explanation
Answer: A - Prime cost pricing refers to total raw food cost plus direct labour. It does not take into account any additional overhead costs that may be associated with the menu price.
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