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

question 78

Multiple Choice

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.
-Cost behaviour refers to

• A)how costs react to a change in the level of activity.
• B)whether a cost is incurred in a manufacturing, merchandising, or service company.
• C)classifying costs as either inventoriable or period costs.
• D)whether a particular expense has been ethically incurred.
• E)how costs react to a change in selling price.

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Definitions:

Current Liability

A business's liabilities or amounts owed that must be settled with lenders within a twelve-month period.

Bonds Payable

Long-term liabilities represented by bonds that a company has issued, promising to repay the principal amount along with interest on specified dates.

Long-Lived Assets

Assets that are expected to provide economic benefits to a company over a period longer than one year, such as buildings, machinery, and land.

Physical Substance

A characteristic referring to tangible assets which have a physical form and presence, as opposed to intangible assets like patents or copyrights.