The Importance Of Cost In Online Shopping

1161 Words 5 Pages
Price, the amount of money that has to be paid to acquire a given product. Insofar as the amount people are prepared to pay for a product represents its value, price is also a measure of value (Caldwell, 2012). In our daily life, shopping become an indispensable part of us, people are spend most of their money to buy everything, like articles of daily use, electronic products, house, car and service, only on the Online shopping in the UK is to experience growth this year as consumers are set to spend an average of £1,174 via the web in 2015, which is up 9.6 per cent on 2014 (Terrelonge, 2015), from the information, can show that people were spend more money on shopping, in modern network coverage is more and more deep, people can have a clear …show more content…
Cost means that the total money, time and resources associated with a purchase or activity (Hansen, Mowen, & Guan, 2007). the cost can divide into direct cost and indirect cost. What is direct cost? Direct costs can be traced directly to a cost object such as a product or a department. In other words, direct costs do not have to be allocated to a product, department, or other cost object (Averkamp, 2004), for example, if a company produces artisan furniture, the cost of the wood and the cost of the craftsperson are direct costs—they are clearly traceable to the production department and to each item produced—no allocation was needed. On the other hand, the rent of the building that houses the production area, warehouse, and office is not a direct cost of either the production department or the items produced. Indirect costs are those which affect the entire company, not just one product. They are costs like advertising, depreciation, general supplies for your firm, accounting services, etc. They are services, and costs, for your entire firm, not just one product. Indirect costs are often called, simply, overhead. Overhead is another name for all the ongoing costs of operating a business that aren 't directly associated with the making the product of the offering of the service (Peavler, 2016). Most of companies will to control their cost for the product, when they control the cost they can make more profit from the

Related Documents