1. How would a 5% sales commission paid to a sales personnel be classified in a manufacturing company?

fixed, period cost

variable, product cost

fixed, product cost

direct labor, product

variable, period cost

2. A true statement about cost behavior is that:

fixed costs are constant on per unit basis and change in total as activity changes.

variable costs are constant on per unit basis and are constant in total as activity changes.

variable cost change on per unit basis and change in total as activity changes.

variable costs are constant on per unit basis and change in total as activity changes.

fixed costs are constant per unit basis and constant in total as activity changed