McDonald\'s is a major company in the restaurant business Required For each of t
ID: 2329761 • Letter: M
Question
McDonald's is a major company in the restaurant business Required For each of the decisions below, indicate whether the decision maker would be more likely to get information from the financial (F) or cost (C) accounting syst em of McDonald's (in addition, pemaps, teo other information) System a. An investor is deciding whether to purchase stock in McDonald's A marketing manager at McDonald's is trying to determine whether to offer breaklast tems all day lon c. A fast-food competitor wants to compare her company's financial performance to McDonald's A labor organization representing workers at McDonald's outlets is deciding wh McDonald's is profitable enough to negotiate for pay raises An advertising manager at McDonald's is deciding what media to use for commercials based on the profitability of different demographic groups 952PMExplanation / Answer
Financial statements are preferred to make investment decisions, wage negotiations, profitability comparisions etc.
Cost statements will be useful in making product launch decisions, marketing plans etc.
Financial statements will be made available to public, but cost statements may have restricted access i.e only to internal users such as managers etc.
decision maker system a.an investor is deciding whether to purchase stock in McDonald's F b.a marketing manager at McDonald's is trying to determine whether to offer breakfast items all day long. C c.a fast food competitor wants to compare her company's financial performance to Mc donald's F d.A labour organisation representing workers at McDonald's outlets is deciding whether McDonald's is profitable enough to negotiate for pay rises. F e.An advertising manager at McDonald's is deciding what media to use for commercials based on the profitability of different demographic groups. C