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1 April, 03:40

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. Product cost

b. Manufacturing overhead

c. Direct labor

d. Period cost

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  1. 1 April, 03:59
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    Answer: The cost of this toll-free line would be classified as d. Period cost.

    Explanation: The cost of a free telephone line for customer inquiries regarding the computer hardware produced by the company would consist of a cost of customer service or follow-up after having made a sale that would be useful to retain customers but is a cost that could be classified as "marketing" cost.
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