It Is Estimated That the Average Cost of a Single

question 195

Multiple Choice

It is estimated that the average cost of a single field sales call on a business customer is about __________,factoring in salespeople compensation,benefits,and travel-and-entertainment expenses.

• A) $150
• B) $250
• C) $300
• D) $400
• E) $500

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Definitions:

Trading Costs

Expenses associated with buying and selling securities, including commissions, spreads, and slippage.

Collection Float

The time period between when a payment is initiated by a debtor and when the funds are actually available to the creditor.

Transaction Motive

Refers to the need to hold cash for the purpose of conducting daily business transactions and operations.

Lockbox System

A service provided by banks to process payments by collecting and depositing checks into the company's account quickly.