Marks & Spencer Is a Well-Known British Department Store

question 140

Multiple Choice

Marks & Spencer is a well-known British department store.Customers from Chicago or Dallas can shop for clothing as easily as a person living in London.This shows how electronic commerce contributes to customer value through the creation of

• A)service utility.
• B)possession utility.
• C)form utility.
• D)possession and place utility.
• E)place utility.

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Definitions:

Activity-based Costing

A costing method that assigns overhead and indirect costs to specific activities, improving the accuracy of product and service pricing.

Idle Capacity

Unused production capability or facilities that could be used to produce more goods but are not currently being utilized due to lack of demand or efficiency.

Plantwide Overhead Rate

A single overhead rate calculated by dividing total manufacturing overhead costs by the total allocation base for the entire plant.

Activity-based Costing

A method in accounting that identifies the activities in an organization and assigns the cost of each activity to all products and services according to the actual consumption by each.