Raw materials are categorized as direct expenses on a company's income statement because they contribute directly to the making of a product or delivery of a service. As raw material costs change along with production volumes, they are considered to be variable costs.
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Answer:
variable costs
Raw materials are categorized as direct expenses on a company's income statement because they contribute directly to the making of a product or delivery of a service. As raw material costs change along with production volumes, they are considered to be variable costs.
Explanation:
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