Save Question 29 (1 point) A fixed cost: O A) Requires the future outlay of cash

Question

Save Question 29 (1 point) A fixed cost: O A) Requires the future outlay of cash and is relevant for future decision making. OB) Is directly traceable to a cost object. C) Is irrelevant for cost-volume-profit and short-term decision making D) Changes with changes in the volume of activity within the relevant range. E) Does not change with changes in the volume of activity within the relevant range. Save Question 30 (1 point) Period costs for a manufacturing company would flow directly to: A) Cost of goods sold on the income statement. B) The income statement as an expense ) Factory overhead. D) The balance sheet as inventon

Explanation / Answer

Question 29) –E) Does not change with changes in the volume of activity within the relevant range.

Note: fixed cost does not change with increase or decrease in the amount of production. Fixed cost has to be paid by the organization irrespective of any other activity.

Question 30)-B) The income statement as an expense

Note: Periodic cost included in selling and administrative expenses section of income statement.

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