Question

Custom Quilters makes decorative comforters, quilted garments, and other products in a small sewing factory. During the upcoming, the company expects to make 2,000 comforters. With respect to the comforters how would the fabric used to make the comforters be classified?

Answer 1

They would be classified as direct and variable.

Step-by-step explanation:

Direct costs and variable costs are similar in nature and are both types of costs involved in production. Direct costs are expenses that can be directly traced to a product, while variable costs vary with the level of production output.

Here the fabric is directly tied to the product and is a direct cost and the variable cost depends here on the output of the comforters.