Ivan Runs a Bakery

Multiple Choice

Ivan runs a bakery. He has lots of bills to pay: electricity, rent for the shop, the staff's wages, flour for bread, cakes and pastries, spelt for his special spelt loaf etc. His accountant says it is important to classify these costs correctly so that he can set the right prices for his products. How would you classify the cost of the spelt?

A) Fixed and direct
B) Variable and direct
C) Fixed and indirect
D) Variable and indirect
E) Marginal