Question

Cost of vegetables is:

• A. Fixed cost
• B. Direct material cost
• C. Indirect material cost
• D. Semi-variable cost

Hint:

Direct material costs are expenses directly associated with the production process, like raw ingredients such as vegetables.

Answer 1

The Correct Option is B

The cost of vegetables is categorized as a Direct material cost. This is because vegetables are a raw material used directly in the production of food.
- Fixed cost is a cost that remains constant regardless of the production volume.
- Indirect material cost includes materials that are not directly involved in the production of food, such as packaging.
- Semi-variable cost includes both fixed and variable costs, but vegetables are typically treated as a direct material cost.
Thus, the correct answer is Direct material cost.