Although Recreational Equipment,Inc

question 194

Multiple Choice

Although Recreational Equipment,Inc.(www.rei.com) has typical retail store hours,35 percent of its orders are placed between the hours of 10 p.m.and 7 a.m.This shows how electronic commerce contributes to customer value through the creation of

• A)time utility.
• B)place utility.
• C)possession utility.
• D)form utility.
• E)access utility.

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Definitions:

Manufacturing Equipment

The machinery and tools used in the manufacturing process to produce goods or products.

Conversion Cost

The combined costs of direct labor and manufacturing overhead involved in transforming materials into finished goods.

Prime Cost

The sum of direct materials and direct labor costs in the production of goods, excluding overhead expenses.

Inventoriable Cost

Direct costs associated with the production of goods, including materials and labor, that are capitalized as inventory on the balance sheet until sold.