Custom Quilters Makes Decorative Comforters,quilted Garments,and Other Products in a Small

question 135

Multiple Choice

Custom Quilters makes decorative comforters,quilted garments,and other products in a small sewing factory.During the upcoming year,the company expects to make 2,000 comforters.With respect to the comforters,how would the fabric used to make the comforters be classified?

• A) Direct and variable
• B) Direct and fixed
• C) Indirect and variable
• D) Indirect and fixed

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Definitions:

Net Sales

Revenue generated from sales activities after deducting returns, allowances for damaged goods, and discounts.

Appraised Value

Appraised value refers to an evaluation of a property's worth at a particular time based on factors like market location, condition, and improvements.

Allocation

The process of assigning or distributing costs or resources among various accounts or cost objects.

Closing Costs

Closing costs are fees and expenses paid during the closure of a real estate transaction, including attorney fees, commissions, and taxes.