Although E-Commerce Can Lower Many Costs of Doing Business, It

question 115

Multiple Choice

Although e-commerce can lower many costs of doing business, it still requires ________.

• A)a professional Web designer's input
• B)a basic infrastructure in the distribution channel to process orders, maintain inventory, fill orders, and handle customer service
• C)a brick-and-mortar store presence
• D)None of the above

Calculate the impact of changes in sales volume on net operating income.

Understand the concept of break-even point in both sales value and unit sales.

Calculate the net operating income based on varying levels of sales, expenses, and changes in sales strategy.

Determine the effects of fixed and variable expenses on profitability.

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Definitions:

General Ledger Account

An individual account within the general ledger that records transactions related to a specific asset, liability, equity, revenue, or expense.

Accounts Payable

Short-term financial obligations or debts a company owes to its suppliers or creditors for goods and services received.

General Journal

A primary accounting record used to record all types of transactions before they are posted to individual accounts in the general ledger.

Specialized Journals

Accounting books or ledgers used to record and track transactions of a specific type, such as sales or purchases, separately from the general ledger for greater efficiency and accuracy.