Minimal Customer Focus Results in a Reduction in the Cost

question 10

True/False

Minimal customer focus results in a reduction in the cost of marketing and sales.

Identify the advantages and disadvantages of buying an existing business, including supplier relationships and customer familiarity.

Acknowledge the importance of formalizing verbal agreements in writing when purchasing a business.

Understand the increasing popularity of buying existing businesses as a pathway to small business ownership.

Understand potential liabilities associated with past business contracts when purchasing an existing business.

---

Definitions:

Incurred Costs

Expenses that have been realized in the course of business operations.

Alternatives

Different options or choices available in a decision-making process.

Traceable

Costs or items that can be directly linked or attributed to a specific product, job, or department, facilitating accurate costing and financial analysis.

Avoidable Cost

A cost that can be eliminated by choosing one alternative over another in a decision. This term is synonymous with differential cost and relevant cost.