Grizzly Delivery calculates the cost per delivery by identifying variables as cost drivers,and allocating overhead accordingly.What costing approach does Grizzly Delivery use?
A)job-order
B)activity-based
C)unit-based
D)process

Question

Quizplus · Accepted Answer

Grizzly Delivery is using activity-based costing approach. This approach identifies cost drivers for each activity and allocates overheads accordingly, which is in line with the methodology of activity-based costing.

Grizzly Delivery Calculates the Cost Per Delivery by Identifying Variables