Your Textbook Describes a Number of E-Business Models

question 137

Short Answer

Your textbook describes a number of e-business models. With the ____________ model, businesses charge buyers for a product/service based on usage levels. For instance, your cell phone company may charge you based on how much data you download while accessing the Internet from your mobile device.

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Definitions:

Activity Based Costing

An accounting method that allocates costs to products or services based on the activities that go into producing them, aiming to provide more accurate product cost information.

Product Offering

The complete set of goods and/or services that a company makes available to consumers.

Diversified

A strategy employed to reduce risk by allocating investments among various financial instruments, industries, or other categories.

Product Costing

The process of determining all costs incurred to bring a product to market, including materials, labor, and overhead.