1. Which of the followingis not considered a product cost?

a. selling expense

b. indirect materials

c. direct materials

d. direct labor

2. Variable costs are expenses that_________________________.

a. remain constant on a per-unit basis and remain constant intotal regardless of activity level

b. remain constant on a per-unit basis but change in total basedon activity level

c. remain constant in total regardless of the activity levelwithin a relevant range

d. decrease in a per-unit basis as activity level increases

3. Which of the following would not be classifiedas manufacturing overhead?

a. property taxes on the factory

b. indirect labor

c. indirect materials

d. direct labor