An increasing average collection period indicates:

a.The firm is generating more income

b.Accounts receivable are going down

c.The company is becoming more efficient in its collection policy

d.The company is becoming less efficient in its collection policy

Managers involved in the process of controlling do all of the following except:

a.Compare actual results to budgets

b.Identify the cause of differences in budgeted amounts and actual amounts

c.Take corrective action

d.Revise the budget

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