Raw material and direct labor costs are examples of ____.
A) fixed costs
B) overhead costs
C) variable costs
D) capital costs

Question

Quizplus · Accepted Answer

Raw material and direct labor costs are examples of variable costs as they vary with the level of production or sales. Fixed costs are costs that remain constant regardless of the level of production or sales, while overhead costs include expenses that cannot be directly traced to a specific product or service, such as rent or utilities. Capital costs refer to the expenses related to acquiring or financing long-term assets or investments.

Raw Material and Direct Labor Costs Are Examples of ____