Fixed Costs of Collection Systems Include All of the Following

question 10

Multiple Choice

Fixed costs of collection systems include all of the following EXCEPT:

• A)encoding charge
• B)Clerical salaries
• C)Account maintenance fees
• D)'b' and 'c'

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Definitions:

Fixed Costs

Expenses that do not vary with production volume or service levels, such as rent, salaries, and insurance premiums.

Price Sensitivity

The degree to which the demand for a product or service is affected by changes in its price.

Unconditional Warranty

A guarantee provided on a product that offers coverage or repair without any conditions or limitations.

Break-even Quantity

is the volume of sales a business must achieve to cover all its costs, without making a profit or a loss.