The Payments System Refers to

question 16

Multiple Choice

The payments system refers to

• A)the means of clearing and settling transactions in the economy.
• B)the means by which the government collects taxes.
• C)the system that credit card companies use to collect their payments.
• D)the type of medium of exchange used in the economy.

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Definitions:

Break-even Point

The point at which total cost and total revenue are equal, meaning no net loss or gain, and one has "broken even".

Mixed Cost

A type of cost that contains both fixed and variable components and changes in total with the level of activity.

Rental Cost

The expense incurred for using a property, equipment, or other asset under a lease agreement for a specified period.

Machine Hour

A unit of measure representing the operation of a machine for one hour, often used in cost accounting to allocate expenses based on machine use.