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 information only states that rent expense is a fixed cost and utilities expense is a mixed cost. There is no information provided about the cost behavior of direct materials.

Select Cost Information for Seacrest Enterprises Is as Follows