Cost concepts such as variable, fixed, mixed, direct, and indirect apply only to manufacturers and not to service companies.

a. True

b. False

The answer is : False. Cost concepts such as variable, fixed, mixed, direct, and indirect apply both to manufacturers and also to service companies. It is an amount that has to be paid or given up in order to get something. In business, cost is usually a monetary valuation in production and delivery of a good or service.