1 Which of the following statements is (are) true? (1) The term full cost refers to the cost of manufacturing and selling a unit of product and includes both fived and variable costs. 2). The fixed cost per unit is considered constant despite changes in the volume of activity within the relevant range A Only (l) is true. B. Only (2) is true. C Both (1) and (2) are true. D. Neither (1) nor (2) are true. 2. Which one of the following costs is classified as a period cost? A. The wages of a worker paid for idle time resulting from a machine breakdown in the molding department. B. The wages of the workers on the shipping docks who load completed products onto outgoing trucks. C. The payments for the employee (fringe) benefits paid on behalf of the workers in the manufacturing plant. D. The wages paid to workers for reworking defective products that failed the quality inspection upon completion 3. Cost-volume-profit (CVP) analysis is a simple but powerful tool to assist management make operating decisions. Which of the following does not represent a potential use of CVP analysis? A. Ability to compute the break-even point. B. Aids in evaluating tax planning alternatives. C Ability to determine optimal sales volumes. D. Aids in determining optimal pricing policies. 4. Break-even analysis assumes that over the relevant range: A. Total Fixed Costs are nonlinear. B. Total Costs are unchanged. C. Unit Revenues are nonlinear. D. Unit Variable Costs are unchanged