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
A)may include either direct or indirect costs.
B)vary with production or sales volumes.
C)include parts and materials used to manufacture a product.
D)can be adjusted in the short run to meet actual demands.
E)remain fixed regardless of the relevant range of production.

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
A)may include either direct or indirect costs. 
B)vary with production or sales volumes. 
C)include parts and materials used to manufacture a product. 
D)can be adjusted in the short run to meet actual demands. 
E)remain fixed regardless of the relevant range of production.

Quizplus · Accepted Answer

Fixed costs may include either direct or indirect costs, as they do not change with the level of production or sales volumes.

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