Internal transaction costs are called ________ costs to distinguish them from the transaction costs of exchanges between organizations in the environment.
A) historic
B) sunk
C) opportunity
D) bureaucratic

Question

Quizplus · Accepted Answer

Internal transaction costs are often referred to as bureaucratic costs, which differentiate them from external transaction costs that occur in exchange between organizations in the environment. Bureaucratic costs include the expenses and inefficiencies of managing and coordinating activities within the organization, such as setting up and enforcing rules, procedures, and regulations.

Internal Transaction Costs Are Called ________ Costs to Distinguish Them