Is Direct Material a variable cost?

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1201565

2026-03-25 19:16

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Yes. Direct materials is a true or proportionately variable cost because the amount used during a period will vary in direct proportion to the level of production activity. Moreover, any amounts purchased but not used can be stored and carried forward to the next period as inventory.

Source: Introduction to Managerial Accounting, Brewer/Garrison/Noreen, 5th edition

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