Where a specific product is the cost object, the materials used to manufacture the product would probably be classified as an) _____.
A)direct, variable cost
B)direct, fixed cost
C)indirect, variable cost
D)indirect, fixed cost

Question

Quizplus · Accepted Answer

Direct costs are costs that can be directly traced to a specific cost object. Materials used to manufacture a product are directly used in the production process and can be traced to a specific product, making them a direct cost. Variable costs are costs that change in proportion to changes in activity levels, and materials used would be considered variable costs as the amount used would depend on the level of production.

Where a Specific Product Is the Cost Object, the Materials