The View That Holds Customers Will Abandon Their Efforts to Enter

question 133

Multiple Choice

The view that holds customers will abandon their efforts to enter and navigate a website if download time exceeds eight seconds is referred to as

• A)the stickiness guideline.
• B)the 80/20 principle.
• C)the eight-second rule.
• D)the law of limited patience.
• E)the expedience factor.

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Definitions:

Activity-Based Costing

A costing method that assigns overhead and indirect costs to specific activities related to production.

Overhead Cost

The ongoing expenses incurred in operating a business that are not directly associated with the production of goods or services, including rent, utilities, and salaries of non-production staff.

Processing Activity

Activities involved in transforming inputs into finished goods through operations such as assembling, cooking, or chemical processing.

Activity-Based Costing

An accounting method that identifies the activities a firm performs and then assigns indirect costs to products. It improves accuracy of product costing by linking cost more directly to the activities that drive those costs.