Which of the Following Represents a Customer That Reneged Due

question 85

Multiple Choice

Which of the following represents a customer that reneged due to the waiting line?

• A)A husband and wife decide to eat out instead after seeing the movie ticket line.
• B)A car drives past the first fast-food restaurant on Hamburger Row because the drive-through was full.
• C)A Black Friday shopper skipped one store because the line went around the building.
• D)A student ordered pizza online because the phone line was busy.
• E)A customer at a gas station went inside to buy a soda,but after waiting in line for a minute left the soda behind and went outside empty-handed.

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Definitions:

Activity Levels

The volume of production or the level of sales activity within a company, which can affect various costs and pricing strategies.

High-low Method

An accounting technique used to estimate variable and fixed costs by analyzing the lowest and highest levels of activity and their associated costs.

Mixed Cost

An expense that contains both fixed and variable components, changing in total with the level of activity but not in a directly proportional manner.

High-low Method

A method employed in accounting that calculates variable and fixed expenses by analyzing the maximum and minimum activity levels.