If each motorcycle requires a belt that costs $20 and 2,000 motorcycles are produced for the month, the total cost for belts is . considered to be an indirect fixed cost considered to be an indirect variable cost considered to be a direct variable cost considered to be a direct fixed cost

considered to be a direct variable cost

Explanation:

Direct costs refer to those costs which can be directly attributable to a product or an activity. Direct costs are incurred on those products which are directly used in the manufacturing of a finished product.

Variable costs are those costs which change with the production level.

In the given case, motorcycle belt cost can be specifically allocated to the cost of a motorcycle. But the cost is not fixed in nature i.e it depends upon the number of motorcycles produced.

Hence such a cost would be classified as Direct Variable Cost.

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i'ts proportional. if the inflation rate is 12% for example, the cpi will be 12% less.

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