Which of the following is a factor influencing the level of transaction costs?
A) Frequency of the transaction.
B) The payment terms.
C) The profit margin.
D) The cost of the lump sum contract.

Question

Which of the following is a factor influencing the level of transaction costs? 
A) Frequency of the transaction. 
B) The payment terms. 
C) The profit margin. 
D) The cost of the lump sum contract.

Quizplus · Accepted Answer

The frequency of the transaction is one of the key factors influencing the level of transaction costs. The higher the frequency of transactions, the lower the transaction costs, because the fixed costs of the transaction are spread over a larger number of transactions.

Which of the Following Is a Factor Influencing the Level