Select the best available answer to fill the blank. 1. We Give Gifts Foundation’s accounting manager prepares reports about the foundation’s grant making, investments, and general administrative...

Select the best available answer to fill the blank.

1. We Give Gifts Foundation’s accounting manager prepares reports about the foundation’s grant making, investments, and general administrative activities. The cost of her salary and fringe benefits would be included as part of the _____________ of its investment management activity.

a. direct cost

b. indirect cost

c. variable cost

2. We Give Gifts Foundation pays Beta Capital Management a fee for managing a portion of its $83 million investment in stocks and bonds. The cost of this fee would be included as part of the _____________ of its investment management activity.

a. direct cost

b. indirect cost

c. variable cost