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SCENARIOS Longaberger

question 42

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SCENARIOS
Longaberger
Longaberger is a company that sells baskets,pottery,fabrics,home decor and home accessories through independent sales consultants.It has a Web site at www.longaberger.com.A visitor at this Web site can learn how to become a sales consultant and present a Longaberger home show for their friends.Answers to any questions someone might have who would like to sell Longaberger baskets are available at the site.There are additional pages at the site that tell the company's history,offer decorating tips,and spotlight this month's products.Each month the company,which began as a producer of high-quality baskets,creates an on-line newsletter for its customers,who are very brand loyal.One issue of the newsletter included sale information,new product information,and a story about the history of the Longaberger family.Access to the newsletter is available at the Web site.
-Refer to Longaberger.Longaberger would like to sell direct to consumers at its Web site.Since most of its customers are used to dealing with the sales force,the company is concerned that they will be uncomfortable,and maybe even suspicious,of dealing directly with the company in an online environment.What technology could Longaberger use to allay customer concerns about transaction data?

Definitions:

Activity-based Costing

This costing method assigns overhead and indirect costs to specific activities, providing more accurate insights into the actual costs of production or service delivery.

Resource Consumption

The amount of resources used by an activity, process, or production.

Activity-based Costing

A costing method that assigns overhead and indirect costs to related products and services based on the activities that drive those costs.

First-stage Allocation

The initial process of assigning indirect costs to various cost pools in activity-based costing, before applying these costs to products or services.