Even If a Company Can Reduce the Customer's Total Cost

question 42

True/False

Even if a company can reduce the customer's total cost of ownership, the customer will still be price-sensitive to the acquisition cost.

---

Definitions:

Normal Credit Balance

Refers to the expected balance type (credit) for certain accounts in accounting, such as revenues, liabilities, and equity accounts.

Liabilities

Financial obligations or debts that a company is required to pay in the future.

Revenues

The total income generated by a company from its business activities, typically from the sale of goods and services to customers.

Common Stock

A type of security representing ownership in a corporation, giving holders a share of profits in the form of dividends and voting rights in corporate matters.