Question 2: A) Sheikh Zayed University in UAE has five departments: Accounting, Economics, Finance, Management, and Marketing. Each department chairperson is responsible for the departments budget preparation. Indicate whether each of the following costs incurred in the Marketing Department is Direct or Indirect to the department:

a. Marketing faculty salaries b. Marketing chairpersons salary c. Cost of computer time of university server used by members of the department d. Cost of office assistant salaries (office assistants are shared by the entire university) e. Cost of travel by department faculty paid from externally generated funds contributed directly to the department f. Cost of equipment purchased by the department from allocated federal funds g. Depreciation allocation of the university building cost for the number of offices used by department faculty h. Cost of periodicals/books purchased by the department

i. Long-distance telephone calls made by marketing faculty.

B) Discuss the importance of Classification of Costs in the case of the above University.