Which Term Refers to the Costs Associated with Changing from One

question 42

Multiple Choice

Which term refers to the costs associated with changing from one choice, such as a brand, retailer, or service provider, to another?

• A) switching costs
• B) transfer costs
• C) conversion costs
• D) external costs

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Definitions:

Merit Rating

An evaluation system that rates the performance or credit rating of an individual or entity.

FICA Taxes

Taxes collected in the United States under the Federal Insurance Contributions Act for both Social Security and Medicare funds.

Estimated Liability

A financial obligation that is recognized on the books before the exact amount is known, typically used for anticipated expenses or losses.

Long-term Liability

Financial obligations of a company that are due beyond one year, such as bonds payable, long-term loans, and lease obligations.