1. As production decreases, one would expect the variable cost per unit to: a. Decrease. b. Increase. c. Remain unchanged. d. Decrease and then increase. 2. The difference between fixed costs and variable costs is that: a. Variable costs per unit vary within the relevant range, while fixed costs per unit remain constant within the relevant range. b. Variable costs per unit are constant (remain unchanged) within the relevant range, while fixed costs per unit vary within the relevant range. c. Viriable costs per unit change in direct proportion to changes in activity, while total fixed costs change in direct proportion to changes in activity. d. Variable costs per unit and fixed costs per unit remain constant within the relevant range. 3. A good example of a mixed cost is a. Direct materials cost. b. Indirect materials cost. c. Electricity cost d. Depreciation