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

question 139

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.
-A mixed cost is

• A)a fixed cost.
• B)a cost with fixed and variable elements.
• C)a variable cost.
• D)always an indirect cost.
• E)a cost with direct and indirect elements.

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Definitions:

Matching Principle

The accounting concept that expenses should be recognized in the same period as the revenues they helped to generate.

Temporary Differences

Differences between taxable income and accounting income that are only for a limited period and will reverse in the future.

Depreciable Assets

Assets subject to depreciation, which entails allocating the cost of tangible assets over their useful lives to account for wear and tear.

Deferred Tax Liability Balance

An accounting term for taxes that are owed but not yet paid, a result of temporary differences between the tax basis of assets or liabilities and their carrying amount in the financial statements.