Tom Watson Is a Manager for a McDonald's Restaurant

question 49

Multiple Choice

Tom Watson is a manager for a McDonald's restaurant.Many of his key responsibilities include analyzing data and making key decisions for the success of his store.Tom's store has been experiencing decreased sales for breakfast services over the past 3 months.Tom is unsure why breakfast revenues are down while lunch and dinner revenues remain unchanged.Tom believes that he can drive revenue up by implementing a few different breakfast promotions, such as free coffee or hash browns with the purchase of a meal.Tom performs an extensive analysis of how continuous changes in breakfast promotions could affect his daily revenue.What type of DSS analysis is Tom performing?

• A)Optimization analysis
• B)Sensitivity analysis
• C)Transaction analysis
• D)Goal-seeking analysis

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Definitions:

Activity-Based Costing

A costing method that assigns costs to products or services based on the activities they require, aiming to provide more accurate information on product costing and profitability.

Equipment Depreciation

The process of allocating the cost of physical assets used in a business over their expected useful lives specifically for equipment.

Resource Consumption

The amount of raw materials, energy, or other resources used by an organization in its operational activities.

Time-Driven

A costing method or approach that allocates costs based on the actual time required to perform a process or activity.