Buying Online from Amazon

question 90

Multiple Choice

Buying online from Amazon.com rather than a brick-and-mortar store is an example of:

• A)a power shift to the consumer.
• B)a power shift to the producer.
• C)a decline in the effectiveness of mass media.
• D)a new form of wholesaling.

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Definitions:

Gross Profit Rate

Is the ratio of gross profit to net sales, expressing the efficiency with which a company utilizes its resources to make a profit.

Cost of Goods Sold

The immediate expenses linked to the creation of products sold by a firm, encompassing materials, workforce, and indirect costs.

Periodic Inventory System

A method of inventory valuation for financial reporting purposes where a physical count of the inventory is taken at specified intervals.

Purchase Account

An account used in accounting to record the total purchases of goods and services by a company.