Adopting a Uniform Menu Across All Sites Provides the McDonald's

question 155

Multiple Choice

Adopting a uniform menu across all sites provides the McDonald's Corporation __________ by spreading the cost of menu development over a large output.

• A) economies of scale
• B) diminishing returns
• C) constant returns to scale
• D) rising marginal product
• E) more flexibility

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Definitions:

Janitorial Department

A division within a company responsible for maintaining a clean and safe working environment.

Sequential Method

A technique used in allocating costs among departments or processes in a sequential manner, considering interdepartmental services.

Support Department Allocations

The distribution of costs from support departments to producing departments based on the level of service used.

Cost Driver

A factor that causes the costs of an activity to increase or decrease.