Consider the cost to lease the Spartanburg plant. This cost is an indirect cost of the X5-there is no separate lease agreement for the area of the plant where the X5 is made. But BMW allocates to the X5 a part of the lease cost of the building- for example, on the basis of an estimate of the percentage of the building’s floor space occupied for the production of the X5 relative to the total floor space used to produce all models of cars.