Question

Identify each of the following costs associated with owning an automobile as direct or indirect (assume a direct cost is one that is directly attributable to the number of miles driven): license plate, driver’s license, gasoline, highway toll fee, oil change, repairs after collision, gasoline tax, monthly loan payment, annual inspection fee, and garage rental.

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(a) license plate - not affected by the number of miles driven - indirect\textbf{indirect}

(b) drivers license - not affected by the number of miles driven - indirect\textbf{indirect}

(c) gasoline - the cost rises proportionally to the number of miles driven - direct\textbf{direct}

(d) highway toll fee - the cost rises with the number of miles driven - direct\textbf{direct}

(e) oil change - frequency depends on number of miles driven - direct\textbf{direct}

(f) repairs after collision - not affected by the number of miles driven - indirect\textbf{indirect}

(g) gasoline tax - rises proportionally to the cost of gasoline and the number of miles driven - direct\textbf{direct}

(h) monthly loan payment - not affected by the number of miles driven - indirect\textbf{indirect}

(i) annual inspection fee - not affected by the number of miles driven - indirect\textbf{indirect}

(j) garage rental - not affected by the number of miles driven - indirect\textbf{indirect}

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