In Order to Be Successful with Web-Based On-Line Shopping, Companies

question 86

Multiple Choice

In order to be successful with Web-based on-line shopping, companies must do all except which of the following?

• A) manage distribution centers and warehouses
• B) operate fleets of trucks
• C) maintain adequate inventories of products
• D) increase the cost of production
• E) schedule deliveries

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Definitions:

Markup

The amount added to the cost of goods to cover overhead and profit, usually expressed as a percentage of the cost.

Discontinued Inventory

Discontinued inventory includes products that are no longer being produced or sold by a company, often due to obsolescence or strategy shifts.

Gross Profit Margin

A profitability metric that shows the percentage of revenue that exceeds the cost of goods sold, indicating the efficiency in producing goods.