Question

For a business that offers customers a store where product can be purchased and picked up...

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. Electricity costs for the period

B. number of customer service phone calls and emails per period

C.Number of products sold

D.number of pounds of product shipped or delivered

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Answer #1
Number of pounds of product shipped or delivered would most likely be the best cost allocation base for distribution​ costs.
Distribution ​costs depend on quantity/weight of products being shipped through delivery channels so pounds of product shipped or delivered would be the best allocation base.
Option D is correct
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