The Measurement of the Number of Customers Who Stop Using

question 70

Multiple Choice

The measurement of the number of customers who stop using or purchasing products or services from a company is called:

• A)switching costs.
• B)churn rate.
• C)CLTV.
• D)switch rate.
• E)turnover percentage.

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Definitions:

Interest Expense

The expenses an organization faces for using borrowed capital over a specified duration.

Effective Interest Rate

The actual rate of interest earned or paid on an investment or loan over a given period, accounting for the effect of compounding.

Bond Discount Amortized

The process of gradually writing off the discount on bonds payable over the life of the bonds, affecting interest expense on the income statement.