Yes, exactly. The story I often tell is one of the first jobs in a restaurant I had (this was in London, folks). A couple asked for cheesecake and I, being new, didn't know where it was (it wasn't with the other cakes). The manager took me to the fridge and pulled out a half-mouldy cake. Innocent me asked if I should tell them that we were out, but the manager gave me a blank look, mechanically cut off the mouldy half and told me to be generous with the portions. I was shocked that the couple didn't send the cake back - I guess it didn't taste any worse than the rest of the food they were serving.
Similar thing happened to me: I was very new at work and found a #10 can of cheese sauce that had some bizarre lumps of mold, rust or I-don't-wanna-know-what in it. I showed the manager and she proceeded to scoop out the lumps with a ladle and then threw the can in the fridge. The sauce was then used for many customers for weeks afterward. The first of many.