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

question 96

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 employees

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Definitions:

Ethers

A class of organic compounds characterized by an oxygen atom connected to two alkyl or aryl groups.

Oxygen Atom

The smallest unit of the element oxygen, consisting of 8 protons, 8 neutrons, and 8 electrons, essential for combustion and respiration.

Carbon Atoms

The basic building blocks of organic molecules, characterized by having four valence electrons, allowing them to form various structured networks and compounds.

Methoxyethane

An organic compound with the formula C3H8O; an ether that is used as a solvent.