Magnet Dot, a printer manufacturing company, set up a website to enable its customers to place orders online. It 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 effective and smooth exchange of information, Magnet Dot has to pay $100,000 annually for fast Internet access. In this scenario, the cost that Magnet Dot incurs is an example of _____.
A) acquisition cost
B) processing cost
C) retrieval cost
D) communication cost

Question

Quizplus · Accepted Answer

The cost incurred by Magnet Dot for fast Internet access is an example of communication cost, which refers to the cost of transmitting information from one location to another.

Magnet Dot, a Printer Manufacturing Company, Set Up a Website