Which of the following activity bases would be the most appropriate for gasoline costs of a delivery service, such as United Postal Service?
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 directly related to the number of miles driven, thus making "number of miles driven" the most appropriate activity base for gasoline costs of a delivery service like United Postal Service. The other options (number of trucks employed, number of trucks in service, and number of packages delivered) may be relevant for other cost categories, but not specifically for gasoline costs.

Which of the Following Activity Bases Would Be the Most