16. Which of the following is a true statement? a. As production levels increase, VC per unit will decrease. b. As production levels increase, total VC will remain the same. c. As production levels decrease, total FC will decrease. d. As production levels decrease, FC per unit will increase. 17. When performing Least Squares Regression Analysis, a highly reliable equation means a. R Square is between .5 and .8 b. Y Coefficient is above .8 c. R Squared is above .8 d. R Squared is below 2 Chapter 6 18. When units produced are greater than units sold a. Operating income is less under absorption costing than variable costing b. Operating income is greater under absorption costing than variable costing c. Operating income is the same under absorption costing and variable costing d. Inventory levels go down 19. Which of the following is appropriate for external reporting? a. Variable Costing b. Absorption Costing c. Contribution Margin Income Statement d. Immediately expensing all Fixed Product Costs