Which of the Following Is Not a Constraint for McDonald's

question 28

Multiple Choice

Which of the following is not a constraint for McDonald's?

• A) The federal government increases the minimum wage.
• B) Each store needs a deep fryer to cook French fries.
• C) A news report increases awareness of childhood obesity,which decreases the number of fast food patrons.
• D) The CEO decides to add an additional store in New York City.
• E) Like many companies,there is an information asymmetry when hiring a new employee.

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Definitions:

Inventory Accounting

A method of accounting that deals with valuing and accounting for changes in inventoried assets, impacting how businesses report their cost of goods sold and value of inventory in financial statements.

Just-In-Time Systems

Inventory management systems that produce or provide items exactly when needed, minimizing inventory costs.

Stock-Outs

Stock-outs occur when an item is no longer available for sale, typically because inventory levels have been depleted.

Periodic Inventory System

A method of inventory valuation where inventory counts and cost of goods sold calculations are made periodically at the end of a reporting period, instead of after each sale.