For a company that manufactures candy,how would the cost of sugar be classified?
A) Yes No
B) No Yes
C) Yes Yes
D) No No

Question

For a company that manufactures candy,how would the cost of sugar be classified? 
A) Yes No 
B) No Yes 
C) Yes Yes 
D) No No

Quizplus · Accepted Answer

The cost of sugar is a direct cost of manufacturing candy, hence it should be classified as a variable cost or a cost of goods sold (COGS) which falls under the category of "Cost of Sales". Therefore, it should be classified as both a "yes" for product cost and a "yes" for variable cost.

For a Company That Manufactures Candy,how Would the Cost of Sugar