Some companies impose a minimum charge for services. For example, a caterer may charge $12 per person,

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Some companies impose a minimum charge for services. For example, a caterer may charge $12 per person, with a minimum charge of $120 to host a small dinner party. What is the rationale for a minimum charge?

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Managerial accounting

ISBN: 978-0471467854

1st edition

Authors: ramji balakrishnan, k. s i varamakrishnan, Geoffrey b. sprin

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Question Posted: Feb 20, 2013 09:14 AM

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Some companies impose a minimum charge for services. For example, a caterer may charge $12 per person,

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The minimum charge for a service represents the opportunity cost to t...View the full answer

Managerial accounting

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