St. John's Company incurred the following costs for the months of March and April.
$\begin{array}{lrr}\text { Type of Cost } &\text { March }&\text { April }\
\text { Insurance } & \$ 5,000 & \$ 5,000 \
\text { Utilities } & 4,000 & 5,000 \
\text { Depreciation } & 3,500 & 3,500 \
\text { Materials } & 10,000 & 20,000
\end{array}$
-Refer to the Figure.Which of the following can be assumed from the information above?
A)Insurance and depreciation are fixed costs.
B)Output decreased from March to April.
C)Output stayed the same from March to April.
D)Insurance is a mixed cost.

Question

St. John's Company incurred the following costs for the months of March and April.
 $\begin{array}{lrr}\text { Type of Cost } &\text { March }&\text { April }\
\text { Insurance } & \$ 5,000 & \$ 5,000 \
\text { Utilities } & 4,000 & 5,000 \
\text { Depreciation } & 3,500 & 3,500 \
\text { Materials } & 10,000 & 20,000
\end{array}$
-Refer to the Figure.Which of the following can be assumed from the information above?
A)Insurance and depreciation are fixed costs.
B)Output decreased from March to April.
C)Output stayed the same from March to April.
D)Insurance is a mixed cost.

Quizplus · Accepted Answer

Insurance and depreciation costs remain constant between March and April, indicating they are fixed costs. Fixed costs do not change with the level of output.

St John's Company Incurred the Following Costs for the Months