Cell Phone Providers Charge Large Fees If You Cancel or Transfer

question 52

Multiple Choice

Cell phone providers charge large fees if you cancel or transfer your service during the first two years, thus _____________ customers.

• A) switching costs
• B) creating entry barriers
• C) locking out
• D) locking in

---

Definitions:

Cash Disbursements

Payments a company makes in cash, covering operational expenses, purchases, or investments.

Variable Selling

Costs that vary depending on the level of sales activity, such as commissions or shipping charges.

Administrative Expense

Expenses incurred by a business that are not directly tied to a specific function such as manufacturing, production, or sales. These can include salaries of executive personnel, accounting fees, and HR services.

Budgeted Fixed Selling

Budgeted fixed selling refers to the predetermined set of expenses associated with selling a product that do not change with sales volume.