QUESTION 4 Relevant costs are costs that must be considered in a decision-making situation. These costs are: Differential Future. Quantifiable. All of the above. Only a. and c. above. QUESTION 5 Repairs and maintenance expense at the Inn were $32,000 and $24,000 for the high and low months of activity, respectively. In the high month, 6,000 rooms were sold, while 2,000 rooms were sold in the low month. If the Inn is open year-round, what amount represents the total annual fixed costs for the Inn, if the high/low two-point method is used? $12,000 20,000. $144,000. $240,000. Cannot be determined from the information given. QUESTION 6 Why is the distinction between direct and indirect costs important? Direct costs are almost always variable and indirect costs are almost always fixed. Department Managers are responsible for the direct costs of their department since they exercise control over them, however, they are normally not responsible for indirect costs. O Indirect costs are significantly less important in determining the profitability of the company. Direct costs can only be controlled by varying volume or quality, whereas indirect costs can often be controlled without affecting volume or quality