Customers Who Shop on Amazon

question 155

Multiple Choice

Customers who shop on Amazon.com™ find it helpful to read the customer reviews associated with products that others have purchased.After making a purchase,the customer can go to Amazon's website and post his/her opinion of the product recently purchased.This strategy not only assists other customers with their decision making,it helps Amazon react more quickly to the performance of the products it sells.Which of the following statements attests to the value of this service?

• A)This action provides for complete transparency of company financial performance.
• B)This action supports a key criterion of the control function: the measurement of customer satisfaction.
• C)This action provides for better tactical planning,particularly the budgeting process.
• D)This action supports the premise of recruiting,hiring,and motivating the employees who believe in social media and other ways to reach customers.

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Definitions:

Indirect Method

A way of preparing the cash flow statement where net income is adjusted for changes in balance sheet accounts to calculate cash flow from operating activities.

Inventory Adjustment

Inventory adjustment is the process of altering the book value of inventory to match the actual physical inventory, accounting for discrepancies, losses, or damages.

Common Stock

A type of equity security that represents ownership in a corporation, entitling the holder to vote on corporate matters and receive dividends.

Cash Flow Statement

A financial report that tracks the amount of cash and cash equivalents entering and leaving a company.