Three Fast-Food Chains Are Discussed in the Text

question 16

Essay

Three fast-food chains are discussed in the text.McDonald's traditional process is make-to-stock; Wendy's has a make-to-order process and Burger King has a process which is a hybrid of the other two.Discuss
the advantages and disadvantages of each of these approaches.Why do you suppose that each of these approaches can survive in the fast food industry?

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Definitions:

Cash Basis

An accounting method where revenues are recognized when received and expenses when paid.

Sales Adjusted

Adjustments made to sales figures for returns, allowances, or discounts.

Direct Method

A cost allocation method that assigns costs directly to cost objects without using any intermediate cost pools or allocations.

Cash Basis

An accounting method where revenues and expenses are recognized only when cash is received or paid, respectively.