Three Fast-Food Chains Are Discussed in the Text

question 28

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; 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:

Unfavourable Variances

Unfavourable Variances are cost or revenue variances that indicate a business is performing worse than its budgeted or planned figures.

Cost of Goods Sold

The total cost of manufacturing and delivering a product to a consumer, including raw materials, labor, and other direct costs associated with production.

Credit Entry

An accounting entry that increases a credit account or decreases a debit account, representing the source of funds or value entry in a financial transaction.

Direct Material Price

The cost of raw materials that are directly used in the manufacturing of a product.