Which of the Following Activity Bases Would Be the Most

question 92

Multiple Choice

Which of the following activity bases would be the most appropriate for gasoline costs of a delivery service such as UPS?

• A) Number of trucks employed
• B) Number of miles driven
• C) Number of trucks in service
• D) Number of packages delivered

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Definitions:

Net Present Value

A method used in capital budgeting to evaluate the profitability of an investment or project, by calculating the difference between the present value of cash inflows and the present value of cash outflows over a period of time.

Cutting Pattern

A specific layout or arrangement that determines how parts or pieces are to be cut out from materials to minimize waste or maximize efficiency.

Scrap

Waste material or discarded items left over from manufacturing processes or considered of inadequate quality for use.

Solver

A computational tool used in optimization to find the best solution to a mathematical problem under given constraints.