Why Would a Small Retailer Be Interested in a Kiosk

question 72

Multiple Choice

Why would a small retailer be interested in a kiosk?

• A) A kiosk can offer more variety than a permanent retailer.
• B) Kiosks provide better prices than the competition.
• C) Shoppers prefer kiosks because it offers more space to shop avoiding the butt-brush effect.
• D) They can fit into prime mall locations.
• E) Kiosks are an opportunity to generate rental income in otherwise vacant space.

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Definitions:

Total Period Cost

The sum of all costs, both fixed and variable, incurred during a specified period of time, excluding product manufacturing costs.

Variable Costing

A costing method that includes only variable production costs—direct materials, direct labor, and variable manufacturing overhead—in product cost.

Net Operating Income

A company's revenue minus its direct costs and operating expenses, indicating the profitability from regular operations before interest and taxes.

Absorption Costing

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