Wee Bee Trucking determines the cost per delivery by identifying variables as cost drivers,and allocating overhead accordingly.This is an example of ________ costing.
A) job-order
B) unit-based
C) activity-based
D) process

Question

Quizplus · Accepted Answer

Activity-based costing involves identifying cost drivers and allocating overhead accordingly. This method is more accurate and specific than traditional unit-based or job-order costing, making it the best choice for Wee Bee Trucking. Process costing is used in industries that produce homogeneous products, such as chemicals or food items, which is not applicable here.

Wee Bee Trucking Determines the Cost Per Delivery by Identifying