Answer :
If Barker fabricating is operating at 79% capacity, an increase in sales is least likely to increase the firm's fixed assets.
What is fixed asset?
Assets are resources owned by a business or individual that can be used to generate positive economic value to the entity. Fixed asset is a type of asset that remains constant regardless the level of output. An example of a fixed asset is the factory where production takes place.
Fixed assets are also known as noncurrent assets. This is because they are usually used for more than one accounting period.
When a company is not producing at full capacity, it means that its fixed asset is not fully utilized. So, when sales increases, the capacity at which the fixed asset is used would increase without increasing the cost of the fixed asset.
Here is the complete question:
Barker Fabricating is operating at 79 percent capacity and earning a substantial prohl An increase in sales is least likely to increase the firme Multiple Choice
fixed assets
cost of goods sold
accounts receive
accounts payable
inventory
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