H & R Block is a service company that prepares tax returns; Borders is a retail company that sells books and CDs; Indian Motorcycle Corporation is a manufacturing company that makes motorcycles. Show that you understand how these companies differ by giving for each one an example of a direct and an indirect cost, a variable and a fixed cost, a value-adding and a nonvalue-adding cost, and a product and a period cost. Discuss the use of cost classifications in these three types of organizations.