1) Which of the following is an exams of an indirect cost?

a) cost of labor

b) cost of materials

c) cost of packaging materials

d) cost of downtime

2) Within the relevant range, if there is a change in the level of the allocation base(cost driver), then:

a) total fixed costs will remain the same and total variables cost will change

b) total fixed costs and total variable costs will remain the same

c) total fixed costs will change and total variable costs will remain the same

d) total fixed costs and total variable costs will change