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1 May, 16:07

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

-Direct

-Variable

-Product

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Answers (1)
  1. 1 May, 16:29
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    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.
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