1)

Product costs are:

	expensed when incurred.
	inventoried.
	treated in the same manner as period costs.
	treated in the same manner as advertising costs.
	subtracted from cost of goods sold.

2)

The fixed cost per unit:

	will increase as activity increases.
	will increase as activity decreases.
	will decrease as activity increases.
	will remain constant.
	will exhibit the behavior described in choices "B" and "C."

3)

Within the relevant range, variable cost per unit will

Question 20 options:

	increase as the level of activity increases
	remain constant
	decrease as the level of activity increases
	none of these

4)

When a decision is made among a number of alternatives, the benefit that is lost by choosing one alternative over another is the

Question 21 options:

	realized cost.
	opportunity cost
	conversion cost
	accrued cost.