Chapter 24, Problem 20Q

To determine

Fixed Costs: Companies incur some costs that are not flexible according to the units produced. Those costs are called fixed costs. Fixed costs categorized into two types as direct fixed costs and indirect fixed costs.

Controllable Costs: The costs that are directly under control of management and affected by the level of activities of business operations are called controllable costs.

To identify: The difference between direct and indirect fixed costs, also if both fixed costs are controllable or not.