Wood used to manufacture chairs is considered a direct variable cost when the cost object is the chair.

Name: Wood used to manufacture chairs is considered a direct variable cost when the cost object is the chair.
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Question

Quizplus · Accepted Answer

Direct variable costs vary with the level of production or output and are directly attributable to producing the specific product, in this case chairs. The cost of wood used to manufacture chairs is a direct variable cost because it is directly attributable to the chair as the cost object.

Wood Used to Manufacture Chairs Is Considered a Direct Variable