13. Fixed costs A. React to small changes in the level of activity. B. Vary on a per unit basis, are fixed with respect to total cost, and can change beyond the relevant range. C. Are fixed on a per unit basis, fixed with respect to total cost, and do not change in response to extreme changes in activity. D. Include rent on plant building, depreciation, major components of the product produced, and plant managerial salaries. 14. Variable costs are A. Fixed on a per-unit basis. B. Fixed in total. C. Variable on a per unit basis, fixed with respect to total cost, and include materials that are significant components of the finished product. D. Variable in total, fixed on a per unit basis, and only change with substantial changes in activity level. 15. The process of identifying existing errors in the manufacturing process and removing them from production before they cause a backlog or a stoppage in production is known as A. External failure. B. Prevention. C. Removal. D. Appraisal. 16. The pre-determined overhead rate is A. Equal to total overhead cost (estimate) divided by the total allocation base (actual). B. The ratio of cost driver divided by total estimated cost. C. Used to calculate the debit side of the Manufacturing Overhead account. D. None of these are true.