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

Question

Quizplus · Accepted Answer

Elif Package Delivery uses an activity-based costing approach, where costs are allocated based on identified cost drivers. This allows for more accurate and precise cost allocation compared to traditional unit-based or process costing approaches. Job-order costing is typically used in industries where products are customized or made to order, and may not be applicable to a package delivery service.

Elif Package Delivery Calculates the Cost Per Delivery by Identifying