The Internet Is Always Considered a Low Cost Option for Selling

question 17

Essay

The internet is always considered a low cost option for selling products and services. From a firm's perspective what are some factors that add to the expense of doing business on the internet and why?

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Definitions:

Activity-Based Costing

A costing methodology that assigns costs to products or services based on the activities and resources that go into producing them, aiming for more accurate overhead allocation.

Labor-Related

Refers to factors or issues that pertain to the workforce or employment sector, including wages, working conditions, and labor laws.

Direct Labor-Hours (DLH)

The total hours worked by employees who are directly involved in the production process of goods or services.

Activity-Based Costing

A method of accounting that assigns costs to products or services based on the resources they consume.