The cost of raw materials used is usually a variable cost.

Question

Quizplus · Accepted Answer

Raw materials used are usually a variable cost because their cost fluctuates with the level of production. As the level of production increases, more raw materials are needed, thus increasing the cost of raw materials. Conversely, if production decreases, less raw materials are needed, thus reducing the cost of raw materials. Therefore, the cost of raw materials is directly related to the volume of production, making it a variable cost.

The Cost of Raw Materials Used Is Usually a Variable