Question 1
Grizzly Delivery calculates the cost per delivery by identifying variables as cost drivers, and allocating overhead accordingly. What costing approach does Grizzly Delivery use?
◦ job-order
◦ activity-based
◦ unit-based
◦ process
Question 2
In activity-based costing, expenses associated with the purchase of health care insurance for employees are ________ overhead.
◦ batch-related
◦ product-related
◦ company wide
◦ expenditure-based