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

question 65

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.
-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.

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Definitions:

Debt-to-Equity Ratio

A financial ratio indicating the relative proportion of shareholders' equity and debt used to finance a company's assets.

Solvency

The ability of an entity to meet its long-term financial obligations and continue its operations into the foreseeable future.

ASPE

Accounting Standards for Private Enterprises; a set of accounting practices and standards for private companies in Canada.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that serve as a global framework for preparing financial statements.