Asked by Ariel Kirkpatrick on May 14, 2024
Verified
Which of the following activity bases would be the most appropriate for gasoline costs of a delivery service?
A) number of truck drivers
B) total miles driven
C) number of trucks in service
D) number of packages picked up
Activity Bases
Criteria or units of measure used to allocate costs in activity-based costing, reflecting the extent to which cost drivers are used or consumed.
- Utilize understandings of how costs fluctuate to address real-life conditions.
Verified Answer
MH
Mikayla HintonMay 21, 2024
Final Answer :
B
Explanation :
Gasoline costs are directly related to the total number of miles driven by the trucks in the delivery service. Therefore, total miles driven would be the most appropriate activity base for allocating gasoline costs.
Learning Objectives
- Utilize understandings of how costs fluctuate to address real-life conditions.
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