Multiple choice

Directions: Choose the correct option for the given question.

Credit and collection cost is an item of

  1. selling overhead cost

  2. office overhead cost

  3. prime cost

  4. work cost

  5. material cost
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Credit and collection costs are incurred to manage customer accounts and ensure payment. These activities are directly related to the selling function.

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