The number of units to be produced is the key to computing the usage of direct materials in quantities and in dollars.

Question

Quizplus · Accepted Answer

The number of units produced is a crucial factor in determining the amount of direct materials needed, and hence the cost of those materials in terms of dollars. As the production volume increases, so does the demand for materials. Therefore, the usage of direct materials will vary based on the number of units produced.

The Number of Units to Be Produced Is the Key