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    Relevant Information for Decision Making - McDonald's

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    You will identify a decision that has recently been made or will be made in the near future in your organization. Identify three relevant and three non-relevant costs in this decision.

    If you cannot identify specific actual amounts, make a reasonable estimate and apply the tool as if the data were factual.

    Assignment Expectations:

    Include a table with a minimum of three relevant and three non-relevant costs as well as a discussion of the information.

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    Solution Preview

    McDonalds purchases an enormous quantity of vegetables, meat and bread products from suppliers around the world to supply its fast food restaurant with a high quality and safe stream of food to cook and serve daily. The E. coli (Escherichia coli) outbreak in Germany in June of 2011 has prompted McDonalds to suspend its German suppliers for 90 days until the safety of their farmers can be assured. The initial scare seemed to implicate cucumbers which are the main ingredient in the pickles that are on most sandwiches in the restaurants. McDonalds has decided to suspend deliveries from their German suppliers for 90 days until the plants can be tested. In the meantime, they have asked their suppliers in the United States and Poland to ship to the German stores. They sent a request for proposal out and have just received the quotes from these two suppliers.

    The decision is whether to use the US or ...

    Solution Summary

    Your tutorial is 442 words and discusses a decision regarding the E. coli outbreak in Germany that requires McDonalds to temporarily suspend food shipments until they can determine food source safety. Three examples of relevant and non-relevant costs are discussed about which vendor to use while the safety inspections are conducted. The discussion tells you WHY the costs are relevant or not relevant including giving you the "general rule" about how to sort these costs into each category.