In terms of currency denomination, please explain to me how McDonalds price its revenues and costs. McDonalds has multiple foreign operation, consider any one of those operations and the contribution it is making to the parent firm's profits. Using this information, what do you think would be the effect of increases/decreases in the dollar's exchange value on the McDonalds profitability?© BrainMass Inc. brainmass.com October 9, 2019, 9:15 pm ad1c9bdddf
Mcdonald's has business operations in multiple nations across the world. The revenues and costs of Mcdonald's offshore operations are not only done according to the local accounting practices, but are adjusted according to GAAP (Generally accepted accounting practices), which is the standard accepted by all US and global companies. This practice ensures consistency in accounting for companies with global operations. The currency denomination will be in USA dollars to ensure consistency.
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McDonald's: Pricing of revenue and costs in India