If each motorcycle requires a fan belt that costs $20 and 2,000 motorcycles are produced in the month,the total cost for the fan belts is:
A)considered to be a fixed cost.
B)considered to be a direct variable cost.
C)considered to be an indirect fixed cost.
D)considered to be an indirect variable cost.
E)none of these are true.

Question

Quizplus · Accepted Answer

The cost of the fan belt is directly related to the number of motorcycles produced, making it a direct variable cost.

If Each Motorcycle Requires a Fan Belt That Costs $20