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 sales employees

Question

Quizplus · Accepted Answer

Help desk costs are directly related to the number of calls received. Therefore, the number of calls would be the best allocation base to allocate help desk costs to various products. Square footage of the help desk office, number of products sold, and number of sales employees have no direct correlation with the help desk costs.

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