When a Customer Orders a Book at Amazon

question 81

Multiple Choice

When a customer orders a book at Amazon.com, the online retailer recommends related books that have been purchased by other customers who bought that book. Amazon is using a(n) :

• A) aggregating approach.
• B) CRM database.
• C) clustering approach.
• D) disaggregating approach.
• E) generic market.

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Definitions:

Aging Schedule

An aging schedule is a table that shows the breakdown of accounts receivable into categories by length of time outstanding, often used to assess the collectibility of receivables.

Inventory Turnover Ratio

A metric indicating how many times a company's inventory is sold and replaced over a given period.

Production Schedule Disruptions

Interruptions or alterations in the planned timeline for manufacturing goods, often leading to delays in delivery and increased costs.

Payable Turnover Ratio

A financial metric that measures how quickly a company pays off its suppliers by comparing net credit purchases to average accounts payable during a period.