Classify each cost as (a) either variable or fixed, and (b) either direct or indirect by selecting the appropriate dropdowns. Consider the cost object to be a flight. Flight attendants and pilots are paid based on hours of flight time.Cost Variable or Fixed Direct or Indirect 1. Maintenance on airplanes 2. Beverages served on planes 3. Insurance premium on airplanes 4. Regional vice president salary 5. Airport landing fee (per flight) 6. Fuel used in planes 7. Luggage handler wages 8. Depreciation (straight-line) on ground equipment

On the one hand, the costs known as variable are the ones whose amount changes with the variation of the production and therefore that this costs never the same because it will depend directly on the production. Meanwhile, the fixed costs are the opposite, they do not depend on the production and will always be the same amount, no matter how much the production increases or decreases.

On the other hand, the direct costs are the ones that are directly related to the cost object that is being analized and therefore that this costs are absolutely necessary to pay in order to keep the production of the good. Meanwhile, the indirect costs are the ones that can not be stricly related to the cost object and therefore that sometimes it is not clear how much of them are needed to be attributed to the product.