Differentiate Between Pure and Partial Electronic Commerce

question 81

Essay

Differentiate between pure and partial electronic commerce. Provide examples of companies in each category.

---

Definitions:

Incremental Cost

The additional cost that a company incurs when producing one additional unit of product or serving one additional customer.

Variable Overhead

Costs that fluctuate with production volume, such as utilities and indirect materials, which do not directly correlate to unit production.

Direct Materials

Raw materials that can be directly attributed to the production of a product, essential in calculating the cost of goods sold.

Direct Labor

The wages and benefits paid to workers who are directly involved in the production of goods or the provision of services.