Use the information below to answer the following question(s).Big Island Coffee Co.produced and sold 120,000 units last year.Per unit revenue and costs were as follows:
Fixed manufacturing overhead and administrative salaries are fixed costs.The per unit amounts are based on last year's production.
-Fixed costs depend on the
A)amount of resources used.
B)amount of resources acquired.
C)volume of production.
D)volume of sales.
E)allocation method.

Question

Use the information below to answer the following question(s).Big Island Coffee Co.produced and sold 120,000 units last year.Per unit revenue and costs were as follows:
  Fixed manufacturing overhead and administrative salaries are fixed costs.The per unit amounts are based on last year's production.
-Fixed costs depend on the
A)amount of resources used. 
B)amount of resources acquired. 
C)volume of production. 
D)volume of sales. 
E)allocation method.

Quizplus · Accepted Answer

Fixed costs depend on the amount of resources acquired, as they are incurred regardless of the level of production or sales.

Use the Information Below to Answer the Following Question(s)