The Internet Raises the Bargaining Power of Customers by

question 87

Multiple Choice

The Internet raises the bargaining power of customers by

• A) creating new opportunities for building loyal customer bases.
• B) making more products available.
• C) making information available to everyone.
• D) lowering transaction costs.

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Definitions:

Variable Costing

An accounting method where variable costs are charged to cost units and fixed costs are treated as period costs.

Cost Behavior

Refers to the way different types of production costs change when there is a change in the level of production.

Special Order

A one-time order not considered part of the company's normal ongoing operations, often requiring special pricing and production considerations.

Variable Costs

Expenses that fluctuate directly with changes in production volume, such as raw materials and direct labor.