What costs would be relevant when Amazon considers
What costs would be relevant when Amazon considers whether to operate its own cargo freight service? Original blog posting (January 7, 2016) Copyright © 2016 by Dr. Wendy Tietz. This work is licensed under a Creative Commons Attribution. Non. Commercial 3. 0 Unported License.
Amazon • Sinception, Amazon has relied on third-party shippers, such as UPS and Fed. Ex • In 2013, bad weather and last minute orders led to many Amazon packages not being delivered in time for Christmas • Additionally, shipping costs are a large expense and are increasing • Amazon is now rumored to be experimenting with operating its own air cargo operation
Question 1 What costs are relevant when Amazon is considering whether to start its own cargo freight service?
Question 2 Would the expenditures related to Amazon’s freight service be capitalized or expensed by Amazon?
Question 3 What tools might Amazon use to analyze the decision to operate its own cargo freight service?
Question Recap 1. What costs are relevant when Amazon is considering whether to start its own cargo freight service? 2. Would the expenditures related to Amazon’s freight service be capitalized or expensed by Amazon? 3. What tools might Amazon use to analyze the decision to operate its own cargo freight service?
For additional news stories to use in the accounting classroom, see the Accounting in the Headlines blog at http: //accountingintheheadlines. com/ Questions or comments? Contact Dr. Wendy Tietz at wtietz@kent. edu Copyright © 2016 by Dr. Wendy Tietz. This work is licensed under a Creative Commons Attribution. Non. Commercial 3. 0 Unported License.
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