A Limitation of E-Commerce Is the Cost of Developing and Maintaining

question 42

True/False

A limitation of e-commerce is the cost of developing and maintaining a website.

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Definitions:

Margin of Safety Percentage

A financial metric indicating the amount by which sales can drop before reaching the break-even point.

Fixed Expenses

are costs that do not fluctuate with the level of production or sales, such as rent, salaries, and insurance premiums.

Contribution Margin

The amount of revenue remaining after deducting variable costs, used to cover fixed costs and generate profit.

Variable Expenses

Costs that change in proportion to the level of production or sales activity.