Which of These Examples Ripped from the Headlines of Business

question 1

Multiple Choice

Which of these examples ripped from the headlines of business periodicals is most accurate?

• A) Netflix has two content delivery systems that are inexpensive to operate.
• B) Blockbuster's reliance on streaming services was overwhelmed by a lack of bandwidth at the dawn of the 21st century.
• C) Once an increase in demanded customization seized the market, Dell was unable to rely on its retail store strategy.
• D) Redbox's reliance on streaming services ended Dell's run as a leader in the industry.

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Definitions:

Work in Process

An inventory account that tracks the cost of products that are in production but not yet completed.

Direct Labor

The wages and benefits for employees directly involved in manufacturing a product.

Fixed Overhead

The portion of overhead costs that remains constant regardless of the level of production or business activity, such as rent, salaries, and insurance.

Work in Process

Inventory consisting of items in production that are not yet completed, part of the manufacturing process costs including labor, materials, and overhead.