The "One-Time Costs That Customers Incur When They Decide to Buy

question 19

Multiple Choice

The "one-time costs that customers incur when they decide to buy a product from a different supplier" are known as

• A) switching costs
• B) economies of scale
• C) economies of scope
• D) capital requirements

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Definitions:

Post-Closing Trial Balance

The final step in the accounting cycle that lists only permanent accounts in the ledger and their balances after adjusting and closing entries have been posted.

Income Statement

A financial report detailing a company's revenues, expenses, and profits or losses over a specific period, demonstrating financial performance.

General Journal

A primary accounting record where financial transactions are entered in chronological order, before posting to accounts in the general ledger.

Sales Discounts

A reduction from the listed price of goods or services that is offered by a seller to a buyer, typically to encourage prompt payment.