Frank Needs to Buy a New Car

question 183

Multiple Choice

Frank needs to buy a new car.Before visiting a showroom,however,he logs onto www.autobytel.com.Here,he can compare the attributes of various makes and models,find information about the prices of various option packages and learn the manufacturer's suggested retail prices for different cars.After deciding on the car he wants to buy,Frank visits the local showroom and negotiates with the salesperson for the model and options package he wants.Because Frank is so well informed about prices,he is able to make a deal for several hundred dollars less than the salesperson's best offer.Frank's car buying experience illustrates which reason why consumers shop online?

• A) convenience
• B) communication
• C) customization
• D) choice
• E) control

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Definitions:

Work in Process

The cost of unfinished goods in the manufacturing process including labor, raw materials, and overhead.

Finished Goods

Products that have completed the manufacturing process and are ready to be sold or distributed to customers.

Cost Ledger

A subsidiary ledger that records the details of costs associated with the production of goods or services, often part of a larger accounting system.

Materials Ledger

A detailed record keeping system that tracks the quantity and cost of materials on hand, used primarily in manufacturing and production settings.