Refer to Crazy Toys, Inc. What is the most appropriate classification of the cost behaviour of the materials cost?
A) step
B) fixed
C) mixed
D) variable

Question

Quizplus · Accepted Answer

The materials cost is most likely to be classified as variable cost because it would change proportionally with the level of production or sales volume. As production increases, the amount of materials needed would also increase, leading to a higher total materials cost.