For Which of the Following Items Might a Customer Be

question 18

Multiple Choice

For which of the following items might a customer be charged extra for an order under activity-based pricing?

• A)Placing the order during non-peak times
• B)Requesting an order be delivered in three separate shipments
• C)Using an automated order system
• D)Tracking delivery via an online support utility

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Definitions:

Average Total Cost

The total cost of production divided by the quantity of output produced.

Total Cost

The complete cost of production, including both fixed and variable costs, incurred by a firm in producing and selling a certain amount of a good or service.

Fixed Costs

Expenses that remain constant regardless of the level of outputs, like lease payments or property taxes.

Marginal Costs

The upsurge in complete costs linked to the production of a supplementary unit of a good or service.