Select cost information for Winfrey 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

Quizplus · Accepted Answer

The cost information provided suggests that utilities expense is a mixed cost (having both fixed and variable components) and rent expense is a fixed cost. There is no information provided that suggests direct materials costs are fixed or variable, so it cannot be determined from this information alone.

Select Cost Information for Winfrey Enterprises Is as Follows: Based