or- an can the e- t. 1. Differentiate between a direct cost and an indirect cost. 2. Define discretionary cost and give two examples (other than those given in the text). 3. Differentiate between a fixed cost and a variable cost and give an example of each that is not in the text. 4. Why are some costs known as semifixed or semivariable? 5. Why might it be unwise to allocate an indirect cost to various departments on the basis of each department's sales revenue to total sales revenue