Which One of the Following Costs Should NOT Be Considered

question 11

Multiple Choice

Which one of the following costs should NOT be considered a direct cost of serving a particular customer who orders a customized personal computer by phone directly from the manufacturer?

• A)the cost of the hard disk drive installed in the computer.
• B)the cost of shipping the computer to the customer.
• C)the cost of leasing a machine on a monthly basis that automatically tests hard disk drives before they are installed in computers.
• D)the cost of packaging the computer for shipment.

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Definitions:

Normal Balance

The side (debit or credit) of an account that is expected to have a higher balance based on accounting principles.

Drawee

In financial terms, this is the entity upon which a cheque or draft is drawn and is responsible for paying the amount.

Financial Statement

A summarized record that shows the financial health of a business or individual, including components like balance sheets, income statements, and cash flow statements.

Normal Balance

The side (debit or credit) of an account that is typically increased, indicating whether an account increases on the left side (debit) or right side (credit).