Chapter 1, Problem 1.20P

To determine

Introduction:

Indirect costs: Sometimes, an expense or cost cannot be linked directly to the volume of production. These are called indirect costs. Since, indirect costs cannot be linked to a product, activity or customer in particular, these are calculated department-wise or product-wise.

To classify: The cost under Meals- on the Wheels Program, particular seniors served by the program and senior citizens served by the Meals on Wheels program.