6. Which of the following is a fixed cost for a plant that manufactures iPods? A. Advertising costs B. Salary of payroll clerk C. Straight line depreciation of warehouse building D. All of the above 7. The cost of a factory machine purchased last year is: A. An opportunity cost B. A differential cost C. A direct material cost D. A sunk cost 8. Which of the following firms is likely to have a high proportion of variable cost in its cost structure? A. Public Utility B. Airline C. Fast food outlet D. Architectural firm 9. Opportunity cost are: A. Not used for decision making. B. The same as variable cost. C. The same as historical cost. D. Relevant to decision making. 10. Which of the following are considered to be product cost? i. Variable manufacturing cost ii. Fixed Manufacturing cost iii. Selling and Admin Expenses A. i, ii and iii above B. i and iii above C. I, and ii above D