What could be considered an indirect cost in food service operations?

Indirect costs in food service operations refer to expenses that are not directly attributable to the production of specific goods or services. Utilities and rent fall into this category because they are necessary for the overall functioning of the operation but cannot be traced back to individual menu items or services provided. These costs support the entire operation rather than a specific product.

Direct labor costs involve employees who are directly engaged in food preparation or service, while ingredient purchases relate directly to the products being sold, making them direct costs. Driver and delivery costs can often be associated with specific deliveries or orders, further aligning them with direct costs. Utilities and rent, on the other hand, impact the operation as a whole, impacting all aspects of service, making them a clear example of an indirect cost in food service operations.