Homework 1(Chapter 2) 2-1 Define cost object and give 2-11Distinguish between inventoriable costs and period costs. 2-24 Classification of costs, merchandising sector. Band Box Entertainment (BBE) operates a large store in Atlanta., Georgia. The store has both a movie (DVD) section and a music (CD) section. BBE reports revenues for the movie section separately from the music section. Required: Classify each cost item (A-H) as follows: a.Direct or indirect (D or I) costs of the total number of DVDs sold. b.Variable or fixed (V or F) costs of how the total costs of the movie section change as the total number of DVDs sold changes. (If in doubt, select on the basis of whether the total costs will change substantially if there is a large change in the total number of DVDs sold.) You will have two answers (D or I V or F) for each of the following items: DerI Ver F Cost Item A. B. C. Costs of DVDs purchased for sale to customers D. Subscription to DVD Trends magazine E Leasing of computer software used for financial Annual retainer paid to a vidco distributor Cost of store manager's salary budgeting at the BBE store Cost of popcom provided free to all customers of the BBE store G. Cost of cleaning the store every night after closing H. Freight-in costs of DVDs purchased by BBE