Select Cost Information for Seacrest Enterprises Is as Follows

question 84

Multiple Choice

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.

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Definitions:

Land

In economics, land encompasses all natural resources used to produce goods and services, including not just agricultural land but also minerals, forests, and water.

Firm's Demand

The quantity of a product or service that a firm is willing and able to buy at various prices over a given period of time.

Substitution Effect

The change in consumption patterns due to a change in relative prices, causing consumers to substitute away from more expensive items towards cheaper ones.

Employment

Refers to the condition of having paid work or the relationship between an employer and an employee where the employee provides labor in exchange for compensation.