Micro Computer Company Has Set Up a Toll-Free Telephone Line

question 13

Multiple Choice

Micro Computer Company has set up a toll-free telephone line for customer inquiries regarding computer hardware produced by the company. The cost of this toll-free line would be classified as which of the following?

• A)Manufacturing overhead.
• B)Period cost.
• C)Direct labour.
• D)Product cost.

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Definitions:

Gross Investment Expenditures

The total amount spent on new capital assets, before accounting for depreciation.

Government Expenditures

The spending by the government sector on goods and services, including public services and public investment.

Welfare Payments

Financial assistance provided by the government to individuals or families in need, aimed at ensuring a minimum level of well-being and social support.

Urban

Relating to or characteristic of a city or town.