Credit Cards Have All of the Following Advantages Except

question 63

Multiple Choice

Credit cards have all of the following advantages except

• A) they allow you to borrow cash interest free for 60 days.
• B) make purchases without carrying cash.
• C) obtain free financing until the bill is due.
• D) itemized monthly statement.

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Definitions:

Fixed Cost

Operating expenses that do not change in proportion to the level of production or sales activity, such as rent or salaries.

Variable Costs

Expenses that fluctuate in proportion to the activity of a business.

Activity Level

A measure of the volume of production or operations, often influencing costs and revenues in a business.

Fixed Cost Per Unit

The total fixed costs divided by the number of units produced, indicating how much each unit needs to contribute to fixed costs.