Classification of costs, service sector. (15-20 minutes) PrestaServicos, SA, is a marketing research firm that organises focus groups for consumer product companies. Each focus group has eight individuals who are paid Esc9,000 per session to provide comments on new products. These focus groups meet in hotels and are led by a trained independent marketing specialist hired by Presta-Servicos. Each specialist is paid a fixed retainer to conduct a minimum number of sessions and a per session fee of Esc360,000. A Presta-Servicos staff member attends each session to ensure that all the logistical aspects run smoothly.  l01 REQUIRED Classify each of the following cost items as:

a. Direct or indirect (D or D costs with respect to each individual focus group.

b. Variable or fixed (V or F) costs with respect to how the total costs of PrestaServi¢os change as the number of focus groups changes. (if in doubt, select the cost type on the basis of whether the total costs will change substantially if a large number of groups are conducted.)

You will have two answers (D or I; V or F) for each of the following items:

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COST ITEM A. Payment to individuals in each focus group to provide comments on new products B. Annual subscription of Presta-Servios to Consumer Reports magazine DORI VOR F