Practice Quiz

Food Service Manager Exam Prep

Category - Management

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The prime cost method for setting a selling price for a food item involves:
  1. Adding raw food costs and direct labor costs
  2. Calculating a markup factor from the percentages of raw food and labor costs
  3. Subtracting depreciation
  4. A & B
Explanation
Answer: D - The prime cost method for setting a selling price for a food involves adding raw food and direct labor costs, and adding a markup factor based on the contributions of raw food and labor costs to the total cost. Depreciation is not considered in the prime cost method.
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