At a university, the common costs e$.$g$.$ repairs and maintenance, admin support, security costs, internet costs, etc.

Question $39$ options:

a$)$

indirect costs to faculties and need to be allocated equally as per peanut$-$butter costing.

b$)$

are direct costs to faculties.

c$)$

need to be allocated to faculties using some cost driver.

d$)$

need to be traced directly to faculties based on their usage of such costs.

e$)$

need to be charged to faculties based on their ability to pay for such costs.