As the sales of desks increase at a furniture company,the raw material costs increase as well.What kind of cost are material costs?

Question

Quizplus · Accepted Answer

Material costs are a type of variable cost, meaning they vary directly with the level of production or sales. As the company sells more desks, they will need to purchase more materials to create the desks, resulting in a higher material cost. Fixed costs, on the other hand, do not change regardless of how much is produced or sold. Total costs are the sum of fixed and variable costs, and marginal costs refer to the additional cost of producing one more unit.

As the Sales of Desks Increase at a Furniture Company,the