AmazonCom (USA) and Other E-Tailers Account for Certain Selling Costs--Fulfillment

question 134

Multiple Choice

Amazon.com (USA) and other e-tailers account for certain selling costs--fulfillment costs related to inventory shipping and warehousing--as part of administrative expenses, instead of as cost of goods sold.Which of the following is incorrect regarding this treatment?

• A)IFRS allows this treatment as long as it's applied consistently and adequately disclosed.
• B)The practice does not affect the bottom line.
• C)The practice does not affect gross margins.
• D)U.S.GAAP allows this treatment as long as it's applied consistently and adequately disclosed.

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Definitions:

Normative Transition

Socially expected changes made by all or most members of a defined population.

Maturation

The process of development in which an individual matures or reaches a full or advanced stage of physical and emotional growth.

Birth Cohort

A group of people who were born during the same period of one or several years and who are, therefore, all exposed to particular historical events at approximately the same age.

Fixed Ratio

In operant conditioning, a schedule of reinforcement where a response is rewarded after a set number of responses.