Direct materials are an example of a
A)fixed cost.
B)variable cost.
C)step cost.
D)mixed cost.

Name: Direct materials are an example of a A)fixed cost. B)variable cost. C)step cost. D)mixed cost.
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Question

Quizplus · Accepted Answer

Direct materials are a variable cost because the cost varies based on the amount of materials used in production. As more units are produced, more materials will be required and therefore the cost of direct materials will increase.

Direct Materials Are an Example of a