Matt Found Out That He Would Have to Pay a $450

question 17

Multiple Choice

Matt found out that he would have to pay a $450 initial fee to switch service providers for his home security system. Which type of switching costs is the $450 an example of?

• A) procedural
• B) transactional
• C) financial
• D) induction

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Definitions:

Procedure

A sequence of actions or steps taken to achieve a particular end.

Broad Guideline

General principles or recommendations that provide direction without being overly prescriptive or detailed.

Fixed Budget

A budget that remains constant, regardless of changes in business activity levels, revenues, or expenses.

Allocates

The process of distributing resources or tasks among people or places, typically according to a plan.