AmazonCom Is an Internet Retailer Located in the United States

question 38

Multiple Choice

Amazon.com is an Internet retailer located in the United States.About 45 percent of its sales are to customers who live outside the United States.This shows how electronic commerce contributes to customer value through the creation of

• A)service utility.
• B)place utility.
• C)possession utility.
• D)form utility.
• E)time and possession utility.

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Definitions:

FIFO Method

An inventory valuation method that assumes items purchased first are sold first, affecting the costs of goods sold and ending inventory.

Conversion Activity

The process of converting raw materials into finished goods through labor and manufacturing operations.

Equivalent Units

A concept used in process costing that converts partially completed units into a smaller number of fully completed units to simplify cost calculations.

FIFO Method

An accounting method where the first items added to inventory are the first ones to be sold or used.