Differentiate Between Pure-Click Companies and Brick-And-Click Companies

question 115

Essay

Differentiate between pure-click companies and brick-and-click companies.

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Definitions:

Variable Costing

A costing method that includes only variable manufacturing costs—direct materials, direct labor, and variable manufacturing overhead—in the cost of goods sold, treating fixed manufacturing overhead as a period cost.

Fixed Manufacturing Overhead

The manufacturing costs that do not change with the level of production, such as rent, salaries, and insurance.

Divisional Segment Margin

The amount of profit generated by each division or segment of a business, crucial for evaluating the financial health of distinct parts of a company.

Net Operating Income

The revenue from a business's operations after subtracting operating expenses, excluding taxes, and interest.