Which of the Following Is True of Netflix

question 30

Multiple Choice

Which of the following is true of Netflix?

• A) It started as two separate services but is now viewed as a single subscription.
• B) It began as a DVD subscription model and then simultaneously introduced a video streaming subscription while maintaining the legacy business.
• C) It isn't a substitute good for conventional use-based media rental.
• D) It got its start offering a DVD-by-mail service for an annual, per-disc rate subscription fee.
• E) It started out as an IPO.

---

Definitions:

Work in Process

Refers to the cost of the unfinished goods in the manufacturing process including labor, material, and overhead.

Materials Price Variance

The difference between the actual cost of direct materials and the standard cost multiplied by the actual quantity purchased or used.

Raw Materials

Basic materials used in the production or manufacturing process, before being transformed into finished goods.

Work in Process

Goods that are in the midst of being produced, representing inventory that is not yet fully completed.