Simon Is a Personal Electronics Salesperson for a Major Retail

question 127

True/False

Simon is a personal electronics salesperson for a major retail chain. When he makes recommendations to customers to help them select the product that will best meet their needs, Simon is providing information utility.

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Definitions:

Ending Inventory

The total value of goods available for sale at the end of an accounting period or fiscal year.

Variable Costing

An accounting method that only includes variable production costs (direct materials, direct labor, and variable manufacturing overhead) in product costs, excluding fixed manufacturing overhead.

Net Operating Income

The profit realized from a business's operations after subtracting operating expenses from operating revenues.

Absorption Costing

A costing method that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed overhead - in the cost of a product.