Which of the Following Examples Demonstrates How Electronic Commerce Creates

question 68

Multiple Choice

Which of the following examples demonstrates how electronic commerce creates customer value through form utility?

• A)Recreational Equipment, an outdoor gear marketer, receives 35 percent of its orders between the hours of 10 p.m. and 7 a.m. when its retail stores are closed.
• B)Forty-five percent of sales at Amazon.com are from buyers who live outside the United States.
• C)Travelocity.com provides almost immediate access to and confirmation of travel arrangements and accommodations.
• D)Bluefly.com, an apparel company, encourages customers to create their own uniquely designed shirts.
• E)Pediatricians can purchase dinosaur stethoscope covers at AllHeart.com.

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Definitions:

Equivalent Units

A term used in cost accounting to express the amount of unfinished goods in terms of complete units of output.

Direct Materials

Direct materials are raw inputs that are directly consumed in the manufacturing process of a product and can be directly attributed to that product.

Direct Labor

The labor cost of workers directly involved in the production of goods or services.

Process Costing

An accounting methodology that traces and accumulates direct costs, and allocates indirect costs, of a manufacturing process, costing each process separately.