In 2000, Eric Baker and Jeff Fluhr Came Up with a Concept

question 61

Multiple Choice

In 2000, Eric Baker and Jeff Fluhr came up with a concept that would do away with scalping if they had their wish, and everyone used StubHub.com.The Internet company brings people who want tickets and people who have tickets that they are not using together.The company has assisted in the sale of tens of millions dollars worth of tickets annually and is always trying to sell more.It charges a small fee for its assistance.Baker and Fluhr would be classified as:

• A)interpreneur
• B)multipreneur
• C)intrapreneur
• D)growth-oriented entrepreneur
• E)micropreneur

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Definitions:

Conversion Cost

Conversion cost is the sum of direct labor and manufacturing overhead costs incurred to convert raw materials into finished goods.

Product Cost

The expenses incurred to create a product, including direct materials, direct labor, and manufacturing overhead.

Direct Materials

Raw materials that can be directly traced to the manufacturing of a product.

Period Cost

Costs that are expensed in the period in which they are incurred, as opposed to being capitalized or included in the cost of goods sold.