Multiple choice questions:

1) Which of the following is a variable cost?

A) Property taxes

B) Salary of plant manager

C) Direct materials cost

D) Straight-line depreciation expense

2) A 15% increase in production volume will result in a:

A) 15% increase in the variable cost per unit.

B) 15% increase in total mixed costs.

C) 15% increase in total administration costs.

D) 15% increase in total variable costs.

3) Variable cost per unit, within the relevant range, will:

A) Increase as production decreases.

B) Decrease as production decreases.

C) Remain the same as production levels change.

D) Decrease as production increases.

4) Which of the following statements is true of the behavior of total variable costs, within the relevant range?

A) They will decrease as production increases.

B) They will remain the same as production levels change.

C) They will decrease as production decreases.

D) They will increase as production decreases.

5) Which of the following statements is true of the behavior of total fixed costs, within the relevant range?

A) They will remain the same as production levels change.

B) They will increase as production decreases.

C) They will decrease as production decreases.

D) They will decrease as production increases.