Langley Company is a construction company that builds houses on special request. What is the proper classification of the cost of the cement building slab used? $\underline{\text { Direct }} \quad\underline{ \text { Fixed }}$

Question

Quizplus · Accepted Answer

The cost of the cement building slab is a direct cost because it can be directly traced to a specific house being built. However, it is not a fixed cost because it varies with the number of houses constructed.

Langley Company Is a Construction Company That Builds Houses on Special