The Internet Has Made Cost Competitiveness a More Important Consideration

question 120

True/False

The Internet has made cost competitiveness a more important consideration for businesses.

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Definitions:

Absorption Costing

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

Required Rate of Return

The minimum expected return on an investment necessary for it to be considered a worthwhile endeavor.

Economic Value

The value of an asset derived from its ability to generate income, benefits, or utility for its owner.

Reference Value

A baseline number or set of numbers used for comparison purposes in analysis.