For a Business That Offers Customers a Store Where Product

question 28

Multiple Choice

For a business that offers customers a store where product can be purchased and picked up or a delivery service that can ship the product directly to the customer, which of the following would most likely be the best cost allocation base for distribution costs?

• A) number of customer service phone calls and emails per period
• B) number of pounds of product shipped or delivered
• C) Electricity costs for the period
• D) Number of products sold