ACC 560 Academy of Art University Week 3 Amazon Inc ABC Costing System Analysis

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Business Finance

ACC 560

Academy of Art University

ACC

Description

Research a publicly traded company that engages in e-commerce activities.

Write a 5–6-page paper in which you:

  1. Describe the company you researched in 1–2 paragraphs.
  2. Discuss how an Activity-Based Costing (ABC) system can be implemented in the company you researched and the benefits that the use will yield to the business performance.
  3. Assess how using an ABC system can provide a competitive advantage to the company in the e-commerce marketplace for which it competes and the resulting impact to the business performance.
  4. Examine the potential impact of ABC costing on e-commerce activities compared to those provided through traditional channels, considering how this knowledge will impact decisions made by management about these services.
  5. Use at least three quality academic resources in this assignment. Use the Strayer Library to conduct your research. Note: Wikipedia and other websites do not qualify as academic resources.

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Explanation & Answer

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AMAZON INC. ABC ANALYSIS

1

Amazon Inc. ABC costing system Analysis
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AMAZON INC. ABC ANALYSIS
Amazon.com Introduction
Amazon.com is an e-commerce American multinational company. The company’s
physical address is Seattle state in the United States of America. The company is in the forefront
on e-commerce, cloud computing solutions, digital streaming services, and the modern artificial
intelligence. The company’s global space is so large that it’s considered among the Big Four
Tech. The counterparts for Amazon.com are Google Inc., Apple Inc., and Microsoft Inc.
Amazon.com achieved the status of Big Four Tech due to its worldwide acceptance and use by
the consumers giving it humongous revenues. The company started off in July 1994. Jeff Bezos
is the man behind Amazon.com, where he begun by offering an online marketplace platform for
books. The products offered later expanded to include electronic products, software, jewelry,
furniture, video games, apparel, food and toys to mention a few (Varia & Mathew, 2014).
Electronic commerce (abbreviated as e-commerce) platforms facilitates online transaction
activities thanks to electronic network (the internet). The activities conducted include buying and
selling of products (goods and services), funds and data transmission. It is evident that
Amazon.com business model is based on “Buy, sale and transfer or ship goods world-wide”
(Varia & Mathew, 2014).
The business transactions may take the following forms: consumer-to-consumer (C2C),
consumer-to-business (C2B), business-to-business (B2B) and business-to-consumer (B2C).
Electronic commerce has revolutionized business operations staging in a modern way of doing
business with retail sector not excluded. Amazon.com remains competitive due to its first mover
advantage on adopting internet use in its trading activities. The 21st Century market must...


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