Consider the production department of a manufacturer of laptop computers. Classify the cost of the processor chips.

-Direct

-Variable

-Product

All the answers are correct.

Explanation:

The cost of the processor chips is a direct cost because it is the vital thing of any laptops. Without a processor, the laptop is nothing but a heartless product.

The cost is variable because the price of a processor varies as there are various processors in the computer market.

The cost is a product cost because it is directly related to manufacturing a laptop.