Bramo Courier Services has set up an extranet website to enable its customers to place orders directly. It has also set up an intranet website to enable its employees to convey order and shipping information to the relevant departments within the firm. However, to ensure an effective and smooth exchange of information, Bramo Courier Services has to pay $100 million annually for Internet access. In this scenario, the cost that Bramo Courier Services incurs is an example of _____.
A) acquisition cost
B) processing cost
C) communication cost
D) retrieval cost

Question

Quizplus · Accepted Answer

The cost incurred by Bramo Courier Services for Internet access is a communication cost as it is related to the exchange of information between the company and its customers and employees through the extranet and intranet websites.

Bramo Courier Services Has Set Up an Extranet Website to Enable