1) Fixed costs per unit is inversely proportional to the volume of units produced. A) TRUE B) FALSE 2) Total variable costs change in direct proportion to changes in the volume of production. A) TRUE B) FALSE 3) Variable cost per unit is constant throughout various relevant ranges. A) TRUE B) FALSE 4) Fixed costs per unit decrease as production levels decrease. A) TRUE B) FALSE 5) If the volume of activity doubles in the relevant range, total variable costs will also double. A) TRUE B) FALSE 6) Fixed cost per unit is assumed to be constant within a particular relevant range of activity. A) TRUE B) FALSE 7) Total variable costs change in direct proportion to a change in volume. A) TRUE B) FALSE 8) During the current year, Simpson Inc. incurred $5,000 of fixed and $12,000 variable costs. If the number of units produced is halved next year, the company will incur $2,500 as fixed and $6,000 as variable costs. A) TRUE B) FALSE 9) Within the relevant range, the total fixed costs and the variable cost per unit remain the same. A) TRUE B) FALSE 10) Total fixed costs can change from one relevant range to another. A) TRUE B) FALSE 11) The high-low method requires the identification of lowest and highest levels of total costs, not activity, over a period of time. A) TRUE B) FALSE 12) 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 13) 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. 14) 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. 15) 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