At Sephora

question 51

True/False

At Sephora.com, a customer service representative taking a phone call from a repeat customer has instant access to what shade of lipstick she likes best. This is an example of a procurement support activity in the value chain.

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Definitions:

Depreciation

A measure of the decrease in value of an asset over time, often due to wear and tear or obsolescence.

Inventory Investment

Refers to the change in the level of stocked goods in a period, contributing to the calculation of Gross Domestic Product (GDP).

Net Investment

The total spending on new capital assets minus the depreciation on existing capital.

Depreciation

The accounting method of allocating the cost of a tangible asset over its useful life, reflecting a decrease in value over time.