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The COGS in a restaurant typically includes direct costs associated with food production, like raw ingredients and any direct labor involved in food preparation.  The marginal cost, which represents the cost added by producing one extra dish, mainly encompasses the cost of raw ingredients because labor and other overhead costs remain relatively stable. In a buffet setup, COGS is largely calculated based on the food prepared. The marginal COGS for an additional guest is often close to zero since the food is prepared in advance, and the cost does not significantly increase unless the buffet needs restocking or the service capacity is reached.



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