Describe the following items: Cost accounting analysis consists of variable costs, fixed costs, direct costs, and indirect costs. A client has requested that you explain the difference between variable and fixed costs to his 15-year old daughter who has a project at school asking her to put together a budget for her Etsy site where she sells her ceramic mugs she makes at home. Explain to her how each type of cost is defined and give her examples in terms a 15 year old would understand.

You have explained variable and fixed costs so well, that the client excitedly tells you his daughter made a 100% on her school project. Now, he would like to explain to his 12-year old son, what the terms 'direct costs' and 'indirect costs' mean and give him examples as it relates to him participating in on-line gaming competitions and attending in-person gaming competitions out of town.