Commerce · Q75

Costing

Graduate and Post Graduate · Commerce · question 75

Q75

Direct material is a _______.

A.

fixed cost

B.

variable cost

Answer

C.

semi variable cost

D.

semi fixed cost

Answer: Option B

Solution

Answer: Option B

Solution:

Direct material is a variable cost. Direct material cost is the cost of the raw materials and components used to create a product.

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