1. Over the range of the number of units produced, costs can be classified as variable costs and fixed costs by its behavior. a) True b) Faise 2. Direct materials and direct labor are variable costs for a manufacturing company. a) True b) False 3. Sales commission, a certain percentage of sales contract, is an example of variable cost. a) True b) Ealse 4. Property taxes a company pays on their manufacturing plant and on their office building are fixed costs. a) True b) False 5. Insurance expense a company pays on their factory is a fixed cost, but insurance expense a company pays on their office building is a variable cost. a) True b) False 6. Voriable cons have the sume unit costs (cosets per unir) regardioss of the aumber of enits proditecd a) True b) False 7. Fixed costs have the same total costs regardless of the number of units produced a) True b) False 8. Standard costs are reasonable costs in manufacturing products including nommal materiaks spoilage, labor idle time and machine idle time a) True b) False 9. The concept of standard costs can be applied to service providers, too. a) True b) False 10. Actual costs are estimated costs rather than real costs incurred in manufacturing products. a) True b) False