Which of the Following Statements About Cost and Its Impact

question 194

Multiple Choice

Which of the following statements about cost and its impact on online shopping is most accurate?

• A)Dynamic pricing is commonly used online because there is no need to respond quickly to changes in supply and demand conditions.
• B)The margins for online offerings is usually higher than those purchased in traditional marketplaces.
• C)Dynamic pricing is the most commonly used pricing strategy for Internet purchases.
• D)Any price advantage for online purchases is lost in shipping and handling fees.
• E)Lower external information search costs is one of the major reasons for the popularity of online shopping.

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Definitions:

Supplies Expense

The cost associated with the consumption of supplies used in the operations of a business during an accounting period.

Equipment

Fixed assets used in operations, such as machinery, computers, and furniture, which have a useful life of more than one accounting period.

Adjusting Entries

Adjusting entries are journal entries made at the end of an accounting period to update account balances before preparing financial statements, aligning them with the accrual basis of accounting.

Current Assets

Holdings that are projected to be liquidated, traded, or used up within twelve months or over the course of the operating cycle, depending on which timeframe is more extended.