10) Fixed costs: A) can be adjusted in the short run to meet actual demands 10). B) may include either direct or indirect costs C) include parts and materials used to manufacture a product D) vary with production or sales volumes 11) Fixed costs depend on the: 11) A) volume of production B) volume of sales C) amount of resources used D) amount of resources acquired 12) Which one of the following is a variable cost for an insurance company? 12) A) property taxes B) rent C) sales commissions D) president's salary 13) Which of the following is a fixed cost for an automobile manufacturing plant? 13) A) administrative salaries B) sales commissions C) electricity used by assembly=line machines D) windows for each car produced 14) If each motorcycle requires a belt that costs $20 and 2,000 motorcycles are produced for the month, 14) the total cost for belts is: A) considered to be an indirect variable cost B) considered to be a direct fixed cost C) considered to be an indirect fixed cost D) considered to be a direct variable cost 15) When 10,000 units are produced, variable costs are $6 per unit. Therefore, when 20,000 units are 15) produced: A) variable unit costs will increase to $12 per unit B) variable unit costs will decrease to $3 perunit C) variable costs will total $60,000 D) variable costs will total $120,000 16) When 20,000 units are produced, fixed costs are $16 per unit. Therefore, when 40,000 units are 16) produced fixed costs will: A) total $640,000 B) decrease to $8 per unit C) increase to $32 per unit D) remain at $16 per unit TRUE/FALSE. Write ' T ' if the statement is true and " F ' if the statement is false. 17) Variable costs per unit vary with the level of production or sales volume. 17) 18) Fixed costs depend on the resources used, not the resources acquired. 18) 19) An appropriate cost driver for shipping costs might be the number of units shipped. 19) MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 20) The most likely cost driver of distribution costs is the: 20) A) number of production hours B) number of products manufactured C) number of parts withinthe product D) number of miles driven