Expenses associated with materials and direct labor for production until the products are sold are called fixed operating costs.

Question

Quizplus · Accepted Answer

Expenses associated with materials and direct labor for production until the products are sold are actually considered variable costs because they vary with the level of production. Fixed operating costs, on the other hand, are expenses that do not vary with changes in production levels, such as rent, salaries, and insurance.

Expenses Associated with Materials and Direct Labor for Production Until