Tom Watson Is a Manager for a McDonald's Restaurant

question 29

Multiple Choice

Tom Watson is a manager for a McDonald's restaurant.Many of his key responsibilities include analysing 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 three 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 impact his daily revenue.What type of DSS analysis is Tom performing?

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

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Definitions:

Operating Activity

Activities that involve the core business operations of a company, such as selling, managing, and producing goods and services.

Paying Interest

The act of providing compensation to lenders for the use of borrowed money, usually calculated as a percentage of the principal amount.

Lenders

Individuals or institutions that provide funds to others under the agreement that the funds will be repaid, typically with interest.

Double-Entry Bookkeeping

An accounting system where every entry to an account requires a corresponding and opposite entry to a different account, ensuring the accounting equation remains balanced.