Which of the following is an example of a cost that varies in total as the number of units produced changes?
A) salary of a production supervisor
B) direct materials cost
C) property taxes on factory buildings
D) straight-line depreciation on factory equipment

Question

Quizplus · Accepted Answer

Direct materials cost varies in total as the number of units produced changes because the more units produced, the more materials are needed to produce those units. The other options listed are fixed costs and do not change based on the number of units produced.

Which of the Following Is an Example of a Cost