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15 September, 13:53

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?

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  1. 15 September, 16:51
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    They would be classified as direct and variable.

    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.
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