Macdonaldization Essay

1179 Words3 Pages
bulb-icon

Recommended: The role of operational management

IMPLICATIONS (LIMITATIONS AND BENEFITS) OF RETAINING THE STANDARD COSTING SYSTEMS AND APPROPRIATE RECOMMENDATIONS

PROGRAMME TITLE: Bachelor of Arts (Hons) in Accounting and Finance
MODULE TITLE: Management Accounting Performance Evaluation MODULE CODE: 6AG523
ONLINE TUTOR: Meera Brooks
ASSIGNMENT: CW1
STUDENT NAME: Lydia Ntambo-Koya
STUDENT NUMBER: 100457047
DATE: 05TH JULY 2017
WORD COUNT: 1174

UNIVERSITY OF DERBY ONLINE LEARNING

This report has been prepared in response to the Operations Managers (OM) of a Manufacturing Firm Active Sports Life (ASL) which produces Female Sportswear who has issued a statement following a reduction in the sales …show more content…

Macdonaldization is a concept introduced by George Ritzer with his 1993 book, The Macdonaldization of Society. (Thoughtco.com, Ashley Crossman 02 March 2017, Macdonaldization Defined). According to Ritzer the Macdonaldization of society is a phenomenon that occurs when the society, its institutions and its organisations are adapted to have the same characteristics that are found in fast food chains which include efficiency, calculability, predictability and standardisation and control. (Thoughtco.com, Ashley Crossman 02 March 2017, Macdonaldization Defined)
Many organisations have adopted the Macdonaldization approach to cut down on costs though this may reduce the quality of the products being presented to customers. Individual needs of customers may be affected as well. As much as ASL’s costs haven been reduced the costs, the quality of its products could be affected and as a result is what is causing the sales revenue to decrease.
Modern Business Needs – OM

Show More
Related

  • George Ritzer's The Mcdonaldization Of Society

    444 Words  | 1 Pages

    In his video, Ritzer identifies four main principles of McDonaldization: predictability, calculability, efficiency, and control.

    Read More

  • Bridgteon Industries Cost Accounting System

    1173 Words  | 3 Pages

    The managerial accounting system at Bridgeton, as it is presented, seems to be lacking detail necessary for efficient analysis. The sections used are sales, direct material, direct labor and overhead by account number, each divided into individual accounts and summed to find totals. There is no separation of fixed and variable costs in any of the accounts, making it difficult to analyze exactly where operations are costing money and, therefore, how they could possibly be improved. The presentation of the information groups all sales together and the different categories of costs together and does not provide for individual product analysis. The products are analyzed (categorized into classes) based on their costs, with no consideration to revenues associated with these products, and no real understanding of the overhead applied to each product. The overhead costs are applied to accounts based on labor and materials of the company as a whole, rather than using considerations associated with the individual products.

    Read More

  • Mcdonaldization In George Ritzer's Journey To Combat Mcdonaldization

    1325 Words  | 3 Pages

    By observing these advantages one could clearly see how the demensions of Mcdonaldization: effeciency, predictability, calcuability, and control are used in the production process. But on the contrary, the irrationalities that exist are less obvious to the untrained eye. Maximum effeiciency has potential to limit human action and skill. Predicability has potential to limit inovation and creativity. An over exageration on quantity, when concerning calculability, could potentially effect a good or service’s quality. Finally, through the application of nonhuman tecnologies, control is being dehumanized. Ritzer writes, “Rational systems inevitably spawn irrationalities that limit, eventually compromise, and perhaps even undermine their rationality” (Ritzer 123). He goes on to say that rational systems are often

    Read More

  • Critically Analyse Ritzer's Theory Of Mcdonaldization Of Society

    804 Words  | 2 Pages

    To analyse the theory of McDonaldization we must first determine where the phrase originated from. Ritzer's theory is considered to be an extended version of Max Weber's (1921/1958,1921/1968) theory of rationalization, alluding to the

    Read More

  • McDonalization of Healthcare

    1426 Words  | 3 Pages

    "McDonaldization.com - What Is It?" McDonaldization.com - What Is It? Rogue Valley Group, 2009. Web. 15 Mar. 2014. .

    Read More

  • Nike Fixed Costs Essay

    794 Words  | 2 Pages

    There are numerous costs of production for Nike Company which can be placed into two categories: fixed costs and variable. Fixed costs are those that remain the same for all production and variable costs change with each project. The organization’s manufacturing process, machinery, research and development costs make up the fixed costs. On the other hand, administration, distribution, labor and raw material are the variable costs. All of these are required in the organizations operation to ensure that it remains profitable. Production cost for each shoe is between $30 and $100 and they are sold at $100 to $300. Therefore, the organization stands a good chance of making a profit (Nike, Inc., 2012).

    Read More

  • Macdonald's National Policy Essay

    795 Words  | 2 Pages

    John A. Macdonald's National Policy was a central economic and political strategy of the Conservative Party in 1878. It meant that Canada levied tariffs with foreign goods. As well this policy would complete the railway, help encourage immigration and implement important tarifs. This policy was also made so that Canada did not have to compete with the Americans competition. Not only did they not want to compete with America, but Canada was dealing with economic issues, so John A. Macdonald came up with the National Policy to help the country with financial struggle.

    Read More

  • Rational Organizational Design

    1503 Words  | 4 Pages

    RITZER, G (2008) The McDonaldisation of Society (5th edition) London: Sage. (Ch. 3 – Efficiency)

    Read More

  • Process Costing System

    1088 Words  | 3 Pages

    "College Accounting Coach." Process Costing-Definitions And Features(Part1) « Process Costing « Cost Accounting «. Feb. 2007. Web

    Read More

  • Activity-based costing

    1171 Words  | 3 Pages

    Activity-based costing (ABC) is a costing method that is designed to provide managers with cost information for strategic and other decisions that potentially affect capacity and therefore “fixed” as well as variable costs. Activity-based costing is mostly used for internal decision making and managing activities while traditional costing method is used to provide data for external financial reports. Most organization uses activity-based costing as an addition system for using traditional absorption costing as sometimes the traditional cost system misleads the product’s profitability. In a company, there are many products on sale, if one product is sold at a high price with low product margin and a product with high product margin at a low price, it may result in a loss. In addition, due to the reason that cost drivers and enterprises business may change, activity-based costing analysis also needs to be revised periodically. This amendment should be prompted to change pricing, product, customer focus and market share strategy to improve corporate profitability.

    Read More

  • Cost Accounting: Its role and ethical considerations

    1039 Words  | 3 Pages

    Cost Accounting: Its role and ethical considerations Introduction: Accounting is the process of identifying, measuring, and communicating economic information about an entity for the purpose of making decisions and informed judgements. The major areas of within the accounting are: Financial Accounting, Managerial Accounting/Cost Accounting and Auditing- Public Accounting Managerial accounting is concerned with the use of economic and financial information to plan and control the activities of an entity and to support the management in planning and decision-making process. Cost accounting is the subset of managerial accounting and it helps management in determination and accumulation of product, process or service cost. Role of Cost Accounting: Increased competition and uncertain business conditions have put significant pressure on corporate management to make informed business decisions and maximize their company?s financial performance. In response to this pressure, a range of management accounting tools and techniques has emerged.

    Read More

  • Differential Analysis In Business

    1360 Words  | 3 Pages

    Heisinger, K., & Hoyle, J. B.(2012). Accounting for Managers. Creative Commons by-nc-sa 3.0. Retrieved from: https://open.umn.edu/opentextbooks/BookDetail.aspx?bookId=137

    Read More

  • Cost Accounting Case Study

    2272 Words  | 5 Pages

    The overall purpose of cost accounting is to advise top administration and the management team on the most suitable and cost effective methods and actions to employ based on cost, capability and efficiencies of a given product or service. It can be defined as the method where all the expenditures used during execution of business activities are gathered, categorized, examined and noted down (Horngren & Srikant, 2000). Once these numbers are gathered and recorded the information is used to determine a selling price and/or to identify possible investment opportunities. Although the principal aim or function of cost accounting is to help the business administration with their decision making and business planning process, the cost accounting data

    Read More

  • Volterman Market Analysis

    1286 Words  | 3 Pages

    With the rise of the economy, consumers have become more and more knowledgeable on selecting their favourable product as a result the organization cannot focus on what it sells but on the side focus on what the customer wants to buy.

    Read More

  • Importance Of Cost Behaviour Analysis

    843 Words  | 2 Pages

    In management accounting, cost management has a crucial role and finds its foundations in understanding “cost behaviour”. “Cost behaviour analysis” can be defined as “the study of how cost changes when there is a change in an organisation’s level of activity”. (Definition https://www.accountingcoach.com/blog/what-is-cost-behavior).

    Read More

More about Macdonaldization Essay

Open Document