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Discussion: Competitiveness, Operating Leverage, and Globalization Read the cost
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Discussion: Competitiveness, Operating Leverage, and Globalization Read the cost accounting case below and answer the questions that follow it in this discussion thread. Make sure you: – Completely answer the questions. – Your initial post should be detailed and supported by at least one source. Your text can serve as a source. Cite and list your sources at the bottom of the post in APA-style format. – Pay attention to grammar, spelling, and the use of APA style – your grade depends on it. COST ACCOUNTING CASE: Today’s retailers are finding that online sales and service are a necessary ingredient of their overall marketing and selling strategy because of increased competition. In certain retail sectors, consumers are moving to the internet in large numbers for convenience and selection. Unfortunately, the investment in resources, both equipment, and labor, can be huge. Some studies show that less than a third of online retailers are profitable on internet sales. As a result, some new consulting firms, software firms, and service providers have begun to provide e-commerce solutions for retailers. QUESTIONS: 1) How does a consulting firm, service provider, or software firm help a retailer reduce costs and become more competitive for internet sales? What is the role of operating leverage in the retailer’s decision to outsource online sales and services? 2) The cost structure is not the only thing management should be concerned about when moving into online sales. What role, if any, does globalization play in a retailer’s efforts to compete for internet sales?