Direct materials cost that varies with the number of units produced is an example of a fixed cost of production.

Name: Direct materials cost that varies with the number of units produced is an example of a fixed cost of production.
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Direct materials cost that varies with the number of units produced is an example of a variable cost of production, not a fixed cost. Fixed costs are consistent regardless of the number of units that are produced.

Direct Materials Cost That Varies with the Number of Units