Which of the Following Statements Is True About Companies Pursuing

question 21

Multiple Choice

Which of the following statements is true about companies pursuing a click-only business strategy?

• A) These companies approach business activities by operating in physical locations.
• B) These companies operate in both physical and virtual arenas.
• C) These companies conduct business electronically in cyberspace.
• D) These companies are only involved in export business activities.
• E) These companies choose to operate their business activities solely in the traditional manner.

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Definitions:

Manufacturing Overhead

All indirect costs associated with the manufacturing process, including but not limited to, utilities, depreciation, and salaries of non-direct labor.

Inventoriable Costs

Direct costs associated with the acquisition or production of goods that are capitalized as inventory and recognized as cost of goods sold when the inventory is sold.

Matching Principle

A fundamental accounting concept that requires expenses to be recorded in the same period as the revenues they helped generate.

Percentage-of-Completion

An accounting method that recognizes revenue and expenses of long-term projects as a percentage of work completed during the period.