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

Question

Quizplus · Accepted Answer

The number of pounds of product shipped or delivered is the most appropriate cost allocation base for distribution costs as it directly relates to the actual shipping and delivery of products to customers. The other options listed do not specifically consider distribution costs and may not accurately reflect the company's expenses for these services.

For a Business That Offers Customers a Store Where Product