Critical Thinking Questions Case 7-2 Now That Your New E-Commerce

question 58

Multiple Choice

Critical Thinking Questions Case 7-2 Now that your new e-commerce website is published to a live server, you are ready to direct your web development and marketing teams to maintain and promote the website. During this morning's meeting with your web development team, the new intern makes a number of observations about the success of your e-commerce website. Which of the following is NOT true?

• A) It is normal to experience a percentage of visitors who initiate but do not complete a transaction.
• B) If many customers are abandoning their purchase in the middle of their transaction, it could indicate issues with website usability.
• C) Having a large number of visitors, regardless of what they do on the website, is the ultimate goal.
• D) It is important to measure the number of visitors, the percentage of visitors who initiate a transaction, and the percentage of visitors who complete a transaction.

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Definitions:

Conversion Cost

The total cost of converting raw materials into finished products, including both direct labor and manufacturing overhead expenses.

Equivalent Units

A concept in cost accounting used to allocate costs to partially completed goods, measured in terms of the amount of work done.

First-In, First-Out

An inventory valuation method where goods first produced or acquired are sold or used first.

Job Order Costing

An accounting method used to track costs and evaluate the expenses associated with producing specific jobs or orders.