A Benefit of Using Credit Cards Is That They

question 215

Multiple Choice

A benefit of using credit cards is that they

• A) have lower interest rates than other forms of credit.
• B) provide a record that makes it possible to keep track of purchases easily.
• C) help consumers be more disciplined when it comes to spending decisions.
• D) allow the consumer to spread out payments and reduce overall costs.

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Definitions:

Total Fixed Costs

Expenses incurred by a business that do not vary with the level of production or sales, including lease payments and salaries of permanent staff.

Total Variable Costs

The sum of all costs that vary with the level of production, including materials and labor.

Total Variable Costs

The sum of all costs that vary directly with the level of production or output.

Total Fixed Costs

Expenses that do not change with the level of production or sales over a certain time period, such as rent or salaries.