1.The cost of lubricants used to grease a production machine in a manufacturing company is an example of a(n):

I) direct material cost.

ii) indirect material cost.

iii) period cost.

iv) none of the above.

2.

Fixed costs expressed on a per unit basis:

i)are not affected by activity.

ii)will decrease with increases in activity.

iii)should be ignored in making decisions since they cannot change.

iv)will increase with increases in activity.