Consider the Following Costs: I

Multiple Choice

Consider the following costs: I.The cost of electricity which is used to power machinery and light the plant.
II) Depreciation on the building which houses both the factory and the sales office.
Which of the following statements is true?

A) Only statement I is an example of a semivariable cost.
B) Only statement II is an example of a semivariable cost.
C) Both statements I and I are examples of semivariable costs.
D) Neither statement I nor II is an example of a semivariable cost.