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 information only identifies rent expense as a fixed cost and utilities expense as a mixed cost (containing both fixed and variable elements). There is no information provided about direct materials, so we cannot determine whether it is a fixed or variable cost. Therefore, the best choice based on the given information is C - utilities expense is a mixed cost and rent expense is a fixed cost.

Select Cost Information for Seacrest Enterprises Is as Follows