Which of the following would be the best allocation base for help desk costs? A) Number of products sold B) Number of sales employees C) Square footage of the help desk office D) N... Which of the following would be the best allocation base for help desk costs? A) Number of products sold B) Number of sales employees C) Square footage of the help desk office D) Number of calls
Understand the Problem
The question is asking for the best allocation base for help desk costs in the context of activity-based costing as it pertains to selling and administrative expenses. We need to evaluate the provided options to determine which is most suitable for allocating these costs effectively.
Answer
Number of calls.
The final answer is number of calls.
Answer for screen readers
The final answer is number of calls.
More Information
The number of calls is directly related to the workload of the help desk, making it the most suitable allocation base to reflect activity levels.
Tips
A common mistake is to choose a base that doesn't directly relate to the help desk's activities, such as square footage or number of products sold.
Sources
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