Many Consumers Who Do Online Banking Are Reluctant to Change

question 16

Multiple Choice

Many consumers who do online banking are reluctant to change banks because of the effort it would take to change automatic payments and online payments. The "cost" to change includes the time and effort it would take to cancel old payments and set up new ones as well as the potential for missing a payment. What do these "costs" represent?

• A) opportunity costs
• B) switching costs
• C) barrier costs
• D) contributory costs

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Definitions:

Fixed Manufacturing Overhead

Costs that do not vary with the level of production or sales, such as salaries of factory supervisors and rent of the manufacturing facility.

Materials Price Variance

The difference between the actual cost of raw materials and the standard cost multiplied by the quantity of materials purchased, used as a measure of cost control.

Direct Labor Variances

The differences between the budgeted and actual costs of direct labor used in production.

Direct Labor

The labor cost directly associated with the production of goods or services, including wages for workers who physically produce a product.