The correct answer is: A. selling overhead.
Selling overhead is the cost of activities that are directly related to the sale of goods or services. This includes costs such as sales commissions, advertising, and marketing. Credit and collection costs are also considered to be selling overhead, as they are incurred in order to sell goods or services and collect payment for them.
Office overhead is the cost of activities that are necessary to support the overall operation of a business, but are not directly related to the sale of goods or services. This includes costs such as rent, utilities, and office supplies.
Prime cost is the cost of the materials and labor that go into making a product. It does not include overhead costs.
Administrative overhead is the cost of activities that are necessary to manage a business, but are not directly related to the sale of goods or services or the production of products. This includes costs such as accounting, human resources, and legal fees.
In conclusion, credit and collection costs are an item of selling overhead. They are incurred in order to sell goods or services and collect payment for them.