Activity-Based Costing for Selling and Administrative Expenses Can Also Be

question 76

Multiple Choice

Activity-based costing for selling and administrative expenses can also be beneficial in allocating expenses to various products.Which of the following is the best allocation base for help desk costs?

• A) Number of calls
• B) Square footage of the help desk office
• C) Number of products sold
• D) Number of sales employees

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Definitions:

Compute

To calculate or process information using a computer or mathematical methods.

Bid Price

The maximum price that a buyer is willing to pay for a security or commodity.

Manager's Objective

The goals that are set by a company's management to be achieved through the operation of the organization.

Construction Firms

Companies specializing in constructing buildings, infrastructure, and other physical structures.