Bond Company's depreciation cost is $63,000 when production is 21,000 units. _____ are the total depreciation expenses for 15,000 and 20,000 units, respectively.
A)$45,000 and $60,000
B)$60,000 and $45,000
C)$63,000 and $63,000
D)None of these answers is correct

Question

Quizplus · Accepted Answer

Depreciation is a fixed cost and does not change with the level of production. Therefore, the total depreciation expenses remain $63,000 regardless of the number of units produced.

Bond Company's Depreciation Cost Is $63,000 When Production Is 21,000