1. A(n) - cost is a cost whose total amount changes in direct proportion to a change in volume. A. variable B. fixed C. mixed D. irrelevant 2. Which of the following costs is an example of a fixed cost? A. Sales commissions B. Salary of plant manager C. Direct materials D. Delivery costs 3. Variable costs are described by which of the following statements? A. They vary per unit of output. B. They are fixed in total. C. They are fixed per unit and vary in total. D. They decrease per unit as production volume increases. 4. Total fixed costs for Randolph Manufacturing are $754,000. Total costs, including both fixed and variable, are $5,000,000 if 160,000 units are produced. The variable cost per unit is: A. $31.25/unit. B. $4.71/unit. C. $35.96.25/unit. D. $26.54/unit. 5. If production increases by 25%, how will total fixed costs likely react? A. Increase by 12.5% B. Increase by 25% C. Decrease by 25% D. Remain the same 6. If production increases by 30%, how will total variable costs likely react? A. Increase by 15% B. Decrease by 30% C. Increase by 30% D. Remain the same 7. Managers should consider which of the following when predicting costs at different volumes? A. The relevant range of the cost B. The type of cost behaviour 5. If production increases by 25%, how will total fixed costs likely react? A. Increase by 12.5% B. Increase by 25% C. Decrease by 25% D. Remain the same 6. If production increases by 30%, how will total variable costs likely react? A. Increase by 15% B. Decrease by 30% C. Increase by 30% D. Remain the same 7. Managers should consider which of the following when predicting costs at different volumes? A. The relevant range of the cost B. The type of cost behaviour