18-3

Direct or Indirect Product Cost Variable FixedDirect Indirect 2 Annual flat fee paid for office security . . . . . . . . . 3. Coolants for machinery 5. Lace to hold leather together . 6. Taxes on factory . 7. Machinery depreciation (straight-line) . . . . . Exercise 18-3 service provider C2 TechPro offers instructional courses in e-commerce website design. The company holds classes in a build- ing that it owns, Classify each of TechPro's costs below as (a) variable or fixed and (b) direct or indirect. Cost classifications for a Assume the cost object is an individual class. 1. Depreciation on clas 2. Monthly Internet connection cost 3. Instructional manuals for students 4. Travel expenses for salesperson 5. Depreciation on computers used for classes 6. Instructor wage (per class) building- ig an airline service. Classify each cost as (a) either variable or fixed, and der the cost object to be a flight. Exercise 18-4 List (b Cost classifications for a service company C2 Variable or Fixed Direct or Indirect Variable Fixed Direct Indirect d equipment