Amazon.com Used a __________ Strategy

question 72

Multiple Choice

Amazon.com used a __________ strategy.

• A)low- cost/differentiation
• B)differentiation
• C)computer
• D)low- cost

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Definitions:

Weighted-Average Method

A method for valuing inventory that determines the cost of goods sold and the final inventory value by computing the average cost of all products available for sale throughout the period.

Conversion Costs

The combined costs of direct labor and manufacturing overhead, which are incurred to convert raw materials into finished goods.

Process Costing

A costing method used in mass production where costs are assigned to processes or departments, not individual units.

Conversion Costs

The total expense required to convert raw materials into finished goods, including labor and overhead costs.