Service and Support Are Even More Important in E-Commerce Than

question 2

Multiple Choice

Service and support are even more important in e-commerce than in traditional commerce because e-commerce companies:

• A) do not have a physical location to help maintain current customers.
• B) spend more on attracting new customers than on maintaining current customers.
• C) do not focus their operations in different parts of a value chain.
• D) rarely cut out the middleman in the link between suppliers and consumers.

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Definitions:

Actual Quantity

The real amount of materials, labor, or overhead used in production or service delivery, as opposed to budgeted or standard quantities.

Standard Variable Overhead

This refers to the portion of variable overhead costs in production that varies directly with the level of production output or activity.

Actual Units Produced

The real number of units manufactured during a specific period, as opposed to planned or estimated production figures.

Standard Rate Per Hour

The standard rate per hour denotes the predetermined cost or wage rate for work performed, typically used in budgeting and payroll calculations.