Which of the Following Is True of Netflix

question 84

Multiple Choice

Which of the following is true of Netflix?

• A) It started as two separate services but is now viewed as a single subscription.
• B) It operates via a DVD subscription and video-streaming model.
• C) It isn't a substitute good for conventional use-based media rental.
• D) It got its start offering a DVD-by-mail service for an annual, per-disc rate subscription fee.
• E) It started out as an IPO.

Understand the objectives of holding marketable securities and their role in liquidity management.

Acknowledge the influence of credit sales terms, including discounts and collection periods, on firm's credit management efficiency.

Identify the purpose and effects of different cash management strategies on a firm's net float.

Assess the impact of inventory management decisions on total inventory costs and how safety stocks influence these costs.

---

Definitions:

Net Operating Income

The amount left from a company's sales revenue after subtracting the costs of running the business, excluding tax and interest expenses.

Variable Costing

A managerial accounting method that only considers variable costs as product costs, with fixed overhead costs treated as period expenses.

Variable Costing

A costing method that includes only variable manufacturing costs — direct materials, direct labor, and variable manufacturing overhead — in the cost of a product.

Unit Product Cost

The total cost incurred to produce, package, and place a product ready for sale, divided by the number of units produced.