If Each Furnace Required a Hose That Costs $20 and 2,000

Multiple Choice

If each furnace required a hose that costs $20 and 2,000 furnaces are produced for the month, the $40,000 total cost for hoses

A) is considered to be a direct fixed cost.
B) is considered to be a direct variable cost.
C) is considered to be an indirect fixed cost.
D) is considered to be an indirect variable cost.
E) is considered to be variable or fixed, depending on the relevant range.