The Costs Incurred by Merchants in Having to Change Product

question 31

Multiple Choice

The costs incurred by merchants in having to change product prices (such as the costs of reentering prices into computer systems) are referred to as which of the following?

• A) subscription costs
• B) fixed costs
• C) menu costs
• D) variable costs

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Definitions:

Outstanding Checks

Checks that have been written and recorded in financial accounts but have not yet been cashed or cleared by the bank.

Bank Reconciliation

A process that explains the difference between the bank balance shown in an organization's bank statement, as supplied by the bank, and the corresponding amount shown in the organization's own accounting records at a particular point in time.

Adjusting Journal Entries

Journal entries made at the end of an accounting period to account for incomes and expenses in the period they occur, ensuring that the financial statements are accurate.

Reconciliation Report

A document that compares two sets of records to ensure they are in agreement and accurate.