Which of the following activity bases would be the most appropriate for gasoline costs of a delivery service?
A) number of truck drivers
B) total of miles driven
C) how many trucks are in service
D) number of packages picked up

Question

Quizplus · Accepted Answer

Gasoline costs are directly related to the distance travelled, so total miles driven would be the most appropriate activity base to allocate these costs. Choices A, C, and D are not directly related to gasoline costs, and would therefore not be appropriate activity bases for this expense.

Which of the Following Activity Bases Would Be the Most