Select the appropriate classification of each of the costs listed below.Each classification may be used more than once, and it is possible that one or more of the classifications may not be used at all.
-Steel used in production
A)Variable cost
B)Fixed cost

Question

Quizplus · Accepted Answer

Steel used in production is a type of direct material cost, which is a variable cost because it varies with the level of production. If production increases, the amount of steel used will also increase, resulting in a corresponding increase in the cost.

Select the Appropriate Classification of Each of the Costs Listed