Which of the Following Statements About Cost and Its Impact

question 109

Multiple Choice

Which of the following statements about cost and its impact on online shopping is MOST ACCURATE?

• A)Dynamic pricing is commonly used online because there is no need to respond quickly to changes in supply and demand conditions.
• B)The margins for online offerings is usually higher than those purchased in traditional marketplaces.
• C)Dynamic pricing is the most commonly used pricing strategy for Internet purchases.
• D)Any price advantage for online purchases is lost in shipping and handling fees.
• E)Lower external information search costs is one of the major reasons for the popularity of online shopping.

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Definitions:

Withdraw

The act of taking money out of a business by an owner for personal use or removing oneself from a business arrangement or partnership.

Revenue

Sum total of revenues earned from transactions involving goods or services that are fundamental to a company's main line of business.

Temporary Account

An account used to track transactions within a fiscal period, which is closed and zeroed out at the period's end, moving its balances to permanent accounts.

Service Fees

Charges for professional services provided by businesses to their customers.