Genoa Company Makes Three Products and Classifies Its Costs as Belonging

Multiple Choice

Genoa Company makes three products and classifies its costs as belonging to the following functions: Design, Production, Marketing, Distribution, and Customer Service.All company costs are assigned to the three products.Direct costs of each of the five functions are traced directly to the three products.The indirect costs of each of the five business functions are collected into five separate cost pools and then assigned to the three products using appropriate allocation bases.The allocation base that will most likely be the best for allocating the indirect costs of the distribution function is:

A) Dollar sales volume.
B) Number of sales persons.
C) Number of customer phone calls.
D) Number of shipments.
E) None of these answer choices is correct.