Discuss whether or not you agree with each of the following statements. Carefully define terms and, where appropriate, provide an illustrative example. all direct costs are variable; variable costs are controllable and fixed costs are not; a cost can be direct in respect of one cost objective but an overhead in respect of another; Including a proportion of fixed production overheads in product costs, as in absorption costing, can be justified since the allocated cost acts as a proxy for hard-to-measure opportunity costs