Answer the following questions about costs.

1. Whether a cost is considered to be a direct or indirect cost depends on (select the best choice)
a. The cost objective.
b. Who is doing the analysis.
c. The time frame for the analysis.
d. Whether costs are inside or outside an organizational unit.
e. The expected range of volume.

2. If you are trying to determine the cost of the third-grade classes in an elementary school, the principal’s salary is
a. Direct and fixed.
b. Indirect and fixed.
c. Direct and variable.
d. Indirect and variable.