McDonald's Cost Control - Assignment Example

Free

Extract of sample
McDonald's Cost Control

McDonald’s bigness hinders the organizational ability to control costs from the head office. The company has many smart people to realize that faster than others. This has lead McDonald’s into developing cost control tools that will help the organization achieve its targets of cost control at every branch level in every country. As a result of this McDonald’s headlined the newspapers around the world and many newspapers wrote that it has earned profit that was far above the expectations of public, analysts and other stakeholders. The result for this boost in profit was effective cost control at McDonald’s. This resulted in extremely high profits for the company. Since profit is calculated by subtracting revenue from costs, any reduction in costs is going to inflate the profit figure. This is what has happened in McDonald’s and the company enjoyed a successful year thanks to the great work done by operation managers and cost control personnel and McDonald's. ...
Download paper

Summary

The paper dwells upon the McDonald’s Corporation as the largest fast food chain in the world. The management of McDonald’s has never faced a problem which is too difficult for them or one they cannot solve. …
Author : eulahmedhurst
Download 2

Tags

Cost

Related Essays

Management and Cost Accounting: Planning, Control and Budgeting
Furthermore, management accounting also aids an organisation to devise strategies as well as plans for improving competencies and efficiencies of an organisation. Management accounting is also known as internal accounting which is useful in improving internal business operations as well as effectiveness of an organisation. Management accounting is mainly utilised by managers of an organisation for enhanced decision making as well as in initiating strategies for successful performance of an organisation. Cost accounting is a process of determining production cost as well as cost involved in...
11 pages (2761 words) Essay
Cost allocation
The intention of this study is cost allocation as is evident from the fact that various firms use several methods of cost allocation. A cost allocation method should meet the specific criteria of the organization so that the ineligible items needed in cost appropriation can be removed and more appropriate items can be included. A systematic and rational cost allocation method should be adopted in the organization. It has to be determined in the beginning as to which divisions in the hospital can be differentiated as service centers or revenue centers and it should be decided how the service...
3 pages (753 words) Essay
USA Cost Accounting
Though Obama promised change, Government spending has continued unabated and even the risk of default on debt obligations in the beginning of August 2010 did nothing to dampen the Government’s appetite for spending. Although there was an impasse between those who supported Obama and those who didn’t, in the end common sense meant that the debt ceiling had to be increased for America to avoid default. Notwithstanding the exhortations of the public to stop Government spending, to tighten the belts and purses of the Government agencies and politicians and to stop the war on terror that has...
4 pages (1004 words) Essay
Cost Accounting
Among the various costing methods, absorption costing and marginal costing are the two important tools that are widely used for managerial decision making. This piece of research paper describes the differences between these two methods and explains the arguments for and against these costing methods. Marginal Costing As Lucey and Lucey (2002, p. 296) defined, marginal costing is an accounting system in which variable costs are charged to some specific cost units for a period of time and fixed costs are fully written off against the total contribution, which is the value of sales less variable...
5 pages (1255 words) Research Paper
McDonald's Corporation Case Study
Still, the organization has increasingly experimented with foods on the fringe of its menu, including health options such as salads and snack wraps, as well as regional specific restaurant items. Company History Founders Richard and Maurice McDonald in San Bernardino, California established McDonald’s in 1940 as a barbeque restaurant. In 1948 the brothers stopped serving barbeque and began a hamburger and fries based approach, implementing streamlined production methods (Sowell, 2009). While McDonald’s would ultimately experience the most long-lasting gains as a result of the...
4 pages (1004 words) Case Study
Product Cost and Budgetary Control Methodologies and Systems
The budgetary control systems controls costs through the preparation of budgets, comparing actual performance with the budget. This allows the managers to act upon the budget and results in order to attain maximum profitability (FAO, 2010). Over the last two decades the computer world is changing how companies operate and report. The need to incorporate computerized systems in every business aspects is still ongoing research. Budget information systems and product cost systems are analysed in this report, their benefits and challenges they pose. The product cost and budgetary control...
7 pages (1757 words) Essay
Managerial and Cost Accounting
This is because managerial accounting provides information and reports that may be used by organizations to identify areas within the organization that need additional investigation and examination. Managers use information provided by managerial accounting such as budgets to make decisions and plans. The information provided by managerial accounting can be used by managers to solve problems. Therefore, managers can use such information to develop alternatives to issues arising from budgets and production changes. Managerial accounting information is used by managers to make estimations of...
9 pages (2259 words) Assignment
Got a tricky question? Receive an answer from students like you! Try us!