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10. Variable costing a. is used for external reporting purposes. b is required under GAAP c. treats fixed manufacturing overhead as a period cost. d. is also known as full costing. 11. If sales equals production in the long run, a. absorption costing income will exceed variable costing income. b. absorption costing income will equal variable costing income. c. variable costing income will exceed absorption costing income. d. absorption costing income may be greater than, equal to, or less than variable costing income depending on the situation. 12. A fixed cost is a cost which a. varies in total with changes in the level of activity b. remains constant per unit with changes in the level of activity. c. varies inversely in total with changes in the level of activity. d. remains constant in total with changes in the level of activity 13. Which of the following is true of activity-based costing? a. Same base as traditional costing b. More cost pools c. Less costly to use d. Eliminates arbitrary allocations