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

question 120

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.
-Variable costs

• A)are always indirect costs.
• B)increase in total when the actual level of activity increases.
• C)include most personnel costs and depreciation on machinery.
• D)can always be traced directly to the cost object.
• E)change in relation to selling price.

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Definitions:

Production Department

The production department is the segment of a business that is responsible for manufacturing its products or delivering its services.