Switching Costs May Arise When

question 19

Multiple Choice

Switching costs may arise when

• A)changing from one computer system to another.
• B)substitute products are available at a lower unit cost.
• C)when there are a large number of interchangeable products.
• D)products are commodity-like in nature.
• E)all of these choices.

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Definitions:

Property Tax

A tax assessed on real estate by the local government and based on the property's value.

Adjusting Journal Entry

A journal record used to adjust the balances in various ledger accounts to more accurately reflect income and expenses for the period.

Supplies Account

An account that tracks the cost of supplies not yet used by a business.

Adjusting Entry

An accounting entry made into a ledger after the end of the accounting period to allocate income and expenditure to the period in which they actually occurred.