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Finance & Accounting
Pages 4 (1004 words)
Name McDonald’s Cost Control Module Semester McDonald’s Corporation is the largest fast food chain in the world. It is present in almost every country of the world. It has been experiencing rapid growth since its birth and posing a lot of managerial problems to be solved.
One of the toughest jobs of a financial manager is cost control. Cost control is an old concept and large organizations usually have specialists for this job. Many organizations employ operations managers to make sure that there is no wastage of resources or operations are not over utilizing the resources. Since resources are costly, therefore all good companies try to eliminate the wastage of resources. The main focus of large companies is on efficiency. A company is never efficient until it is cost efficient. Even allocative efficiency is second to cost efficiency. This makes the cost controlling a very important job in a large organization. (McDonald's 2010) 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. ...
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