M!ke Internet Inc Offers an Internet Connection and an Email

question 4

Multiple Choice

M!ke Internet Inc offers an Internet connection and an email account for $9 per month.The company does not retail goods,nor does it provide a forum for subscriber auctions.Which of the following is most likely FALSE?

• A)M!ke is an Internet service provider.
• B)M!ke is an online service provider.
• C)M!ke is an online intermediary.
• D)M!ke is unlikely to be seen as a participant in its customers' communications.
• E)Mike has no risk of liability

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Definitions:

Absorption Costing

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

Unit Product Cost

The total cost (both fixed and variable) incurred to produce, store, and sell one unit of a product.

Variable Costing

An accounting method that only considers variable costs for product costing, excluding fixed overheads.

Net Operating Income

Net operating income is the total profit a company generates from its operations, excluding taxes and interest, highlighting operational efficiency.