A SaaS Provider Specifies in a User Agreement That the Customer

question 37

Multiple Choice

A SaaS provider specifies in a user agreement that the customer agrees that any misuse of the service will be the responsibility of the customer. Which of the following risk response methods was applied?

• A) Acceptance
• B) Avoidance
• C) Transference
• D) Mitigation

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Definitions:

Estimated Fixed Costs

Forecasted expenses that do not vary with the level of production or sales over a specific period of time.

Net Sales

This refers to the total revenue from sales minus returns, allowances for damaged or missing goods, and discounts.

Contribution Margin Ratio

The percentage of each sales dollar that is available to cover the fixed costs and provide an operating income.