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 employees

Question

Quizplus · Accepted Answer

The best allocation base for help desk costs would be the number of calls. This is because the cost of providing help desk support services directly relates to the number of calls received, as each call requires a certain amount of resources to resolve the issue. Square footage of the help desk office, number of products sold or number of employees may not necessarily have a direct correlation to the costs of providing help desk services.

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