1. Use the table column layout below to categorize the costs. Direct or Indirect, Allocable or Unallocable, Explanation

Example	Direct or Indirect	Allocable or Unallocable	Explanation
Operating expenses
Reimbursement for economy-class air travel related to a specific research project	Direct	Allocable
Depreciation on the Universitys yacht Victoria
Alcoholic beverages and entertainment costs
Advertising
Organized fund-raising costs
Costs of books and periodicals purchased for campus libraries
Alumni activities
Investment management
Operation, renovation, and depreciation of university-owned houses
Public relations