Question

Direct cost increases when ______.

विकल्प

• Sales price of product increases

• Cost of raw material increases

• Tax increases

• Subsidy increases

Answer 1

Direct cost increases when cost of raw material increases.

Explanation:

Direct costs rise when the cost of raw materials increases because these expenses are directly tied to the production of goods. As raw materials are essential components, any price fluctuation directly impacts the total production cost.