Explain how each of the following cost items could be classified under more than one of the below headings:
(a) variable cost;
(b) fixed cost;
(c) semi-variable cost;
(d) step cost;
(e) Direct cost;
(f) Indirect cost;
(g) product cost;
(h) period cost.
(a) Raw materials to be used in production;
(b) Subcontracted labour in a special contract; and
(c) Rent of a warehouse for one year to allow temporary expansion of output.