Service charge

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A service charge is a fee added to a customer's bill. The purpose of a service charge often depends on the nature of the product and corresponding service provided. Examples of why this fee is charged are: travel time expenses, truck rental fees, liability and workers' compensation insurance fees, and planning fees.

In the context of banquets and restaurants serving a large group of people, a service charge is often added to the price of food and drink as a mandatory gratuity to ensure that the waitstaff is adequately compensated. This is often heavily criticised, as most responsible companies should include costs in their pricing structure. Hence it is seen as a way of lowering prices (through lower wages) whilst ensuring staff compensation by another method.

[edit] External link

• Service_charges article at LISWiki, a Library and information science wiki