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

Question

Quizplus · Accepted Answer

Gasoline costs are more closely related to the number of miles driven rather than the number of trucks employed or in service, as a larger fleet of trucks may not necessarily drive more miles. The number of packages delivered may also not be a suitable activity base as the weight and distance of the packages may vary, affecting gasoline usage differently.

Which of the Following Activity Bases Would Be the Most