Wesson Company sold 10,000 units of its only product in the first half of the year.If sales increase by 12% in the second half of the year,which cost will increase?
A)Depreciation on equipment.
B)Wages of administrative staff.
C)Office rent.
D)Direct materials.
E)Property insurance.

Question

Quizplus · Accepted Answer

If sales increase, the production of units also increases which will result in an increase in the cost of direct materials required for production.

Wesson Company Sold 10,000 Units of Its Only Product in the First