Chapter 1, Problem 27E

Accounting Systems

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 system of McDonald’s (in addition, perhaps, to other information).

1. a.      An investor is deciding whether to purchase stock in McDonald’s.
2. b.      A marketing manager at McDonald’s is trying to determine whether to offer breakfast items all day long.
3. c.       A fast-food competitor wants to compare her company’s financial performance to McDonald’s.
4. d.      A labor organization representing workers at McDonald’s outlets is deciding whether McDonald’s is profitable enough to negotiate for pay raises.
5. e.       An advertising manager at McDonald’s is deciding what media to use for commercials based on the profitability of different demographic groups.