All of the Following Statements Are True About Information Technology's

question 70

Multiple Choice

All of the following statements are true about information technology's impact on business firms except:

• A)it helps firms expand in size.
• B)it helps firms lower the cost of market participation.
• C)it helps reduce internal management costs.
• D)it helps reduce transaction costs.
• E)it helps reduce agency costs.

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Definitions:

Operations

Refers to the day-to-day activities necessary for a business to function, including production, inventory management, and logistics.

Fixed Manufacturing Overhead

Consistent expenses related to manufacturing that do not change with the level of production, such as factory rent and salaries of production supervisors.

Released

Term indicating that a product, information, or service has been made available to the public or a specific audience.

Absorption Costing

A costing method that includes all manufacturing costs, both variable and fixed, in the cost of a product.