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

question 42

Multiple Choice

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

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

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Definitions:

Anxiety

The state of feeling excessive and persistent worry and fear over everyday situations, often leading to physical symptoms such as increased heart rate.

Arousal

A physiological and psychological state of being awake or reactive to stimuli, often associated with physical excitation or emotional responses.

Extrinsic Locus

The belief that control over one's life events and outcomes resides primarily in external factors or forces beyond one's personal control.

Julian Rotter

A psychologist known for his work in social learning theory and the introduction of the concept of locus of control.