In which situation would a business likely use Level 3 data?

In which situation would a business likely use Level 3 data?

• A. For high-volume transaction reporting and cost analysis
• B. For cash transactions with limited documentation
• C. For tracking individual customer purchases
• D. For basic credit card transactions

Answer: (A)

A business would likely use Level 3 data primarily for high-volume transaction reporting and cost analysis due to its enhanced data capabilities. Level 3 data includes detailed purchase information such as line-item details, product descriptions, quantities, and extended prices. This comprehensive data set allows businesses to analyze transaction patterns, manage expenses, and improve reporting accuracy. Moreover, using Level 3 data can also lead to lower interchange rates for card transactions, especially for B2B purchases, making it economically advantageous for businesses that process a significant volume of these transactions. The depth and detail of Level 3 data provide insights that support strategic decision-making and financial analysis, which is particularly beneficial in environments with frequent, high-volume transactions.

A business would likely use Level 3 data primarily for high-volume transaction reporting and cost analysis due to its enhanced data capabilities. Level 3 data includes detailed purchase information such as line-item details, product descriptions, quantities, and extended prices. This comprehensive data set allows businesses to analyze transaction patterns, manage expenses, and improve reporting accuracy.

Moreover, using Level 3 data can also lead to lower interchange rates for card transactions, especially for B2B purchases, making it economically advantageous for businesses that process a significant volume of these transactions. The depth and detail of Level 3 data provide insights that support strategic decision-making and financial analysis, which is particularly beneficial in environments with frequent, high-volume transactions.