A bank that replaces mailing monthly bank statements to customers with electronic statements would have an increase in variable costs and a decrease in fixed costs.

Question

Quizplus · Accepted Answer

Switching from mailing monthly statements to electronic statements would decrease variable costs (e.g., paper, printing, postage) and would not necessarily affect fixed costs, which are costs that do not change with the volume of business (e.g., rent, salaries).

A Bank That Replaces Mailing Monthly Bank Statements to Customers