Which of the Following Best Illustrates the Transaction Fee Revenue

question 71

Multiple Choice

Which of the following best illustrates the transaction fee revenue model?

• A) eBay receives a small fee from a seller if a seller is successful in selling an item.
• B) Epinions receives a fee after steering a customer to a participating Web site where he or she makes a purchase.
• C) Flickr provides basic services for free, but charges a premium for advanced services.
• D) Apple accepts micropayments for single music track downloads.

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Definitions:

Absorption Costing

An accounting method that includes all manufacturing costs — direct materials, direct labor, and both variable and fixed overhead — in the cost of a product.

Variable Costing

A costing method that includes only variable production costs in product cost calculations, used for internal decision-making.

Net Income

The excess of all revenues and gains over all expenses and losses for a specific period of time.

Production

The process of creating goods and services from various resources.