Select cost information for Seacrest Enterprises is as follows: Based on this information:
A)Both direct materials and rent expense are variable costs.
B)Utilities expense is a mixed cost and rent expense is a variable cost.
C)Utilities expense is a mixed cost and rent expense is a fixed cost.
D)Direct materials is a fixed cost and utilities expense is a mixed cost.
E)Both direct materials and utilities expense are mixed costs.

Question

Select cost information for Seacrest Enterprises is as follows:  Based on this information:
A)Both direct materials and rent expense are variable costs. 
B)Utilities expense is a mixed cost and rent expense is a variable cost. 
C)Utilities expense is a mixed cost and rent expense is a fixed cost. 
D)Direct materials is a fixed cost and utilities expense is a mixed cost. 
E)Both direct materials and utilities expense are mixed costs.

Quizplus · Accepted Answer

The given cost information implies that direct materials is a variable cost, while rent expense is a fixed cost. However, there is no information provided regarding whether direct materials or utilities expense are mixed costs. Therefore, the only conclusion that can be drawn is that utilities expense is a mixed cost and rent expense is a fixed cost.

Select Cost Information for Seacrest Enterprises Is as Follows