Cost of running the restaurant


Question 1. Why does the restaurant even bother to stay open, because it might seem that the revenue from the few customers could not possibly cover the cost of running the restaurant? Why do you think the restaurant still open even though it's not covering all its costs?

Question 2. In making the decision whether to open for lunch, what kind of costs must the restaurant consider in the decision making and why?

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Accounting Basics: Cost of running the restaurant
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