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When using the cost of production report to analyze the change in direct materials cost per equivalent unit, an investigation might reveal that direct materials
When using the cost of production report to analyze the change in direct materials cost per equivalent unit, an investigation might reveal that direct materials costs
a will never decrease due to the way the cost is calculated.
b will never increase due to the way the cost is calculated.
c will only increase if conversion costs increase as well.
d may increase or decrease between periods, depending on the fluctuation of the cost of the direct materials.
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