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 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 in order to enable effective and smooth exchange of information between its customers and employees is an example of communication cost.

Bramo Courier Services Has Set Up an Extranet Website to Enable