7. Which of the following is an example of a cost that varies in total as the number of units produced changes? a. Salary of a production supervisor b. Direct materials cost c. Property taxes on factory buildings d. Straight-line depreciation on factory equipment 8. Which of the following describes the behavior of the variable cost per unit? a. Varies in increasing proportion with changes in the activity level b. Varies in decreasing proportion with changes in the activity level c. Remains constant with changes in the activity level d. Varies in direct proportion with the activity level 9. As production increases, what would you expect to happen to fixed cost per unit? a. b. c. d. Increase Decrease Remain the same Either increase or decrease, depending on the variable costs 10. Knowing how costs behave is useful to management for all the following reasons except for a. predicting customer demand. b. predicting profits as sales and production volumes change c. estimating costs. d. changing an existing product production . As production increases, what should happen to the variable costs per unit? a. Stay the same b. Increase c. Decrease. d. Either increase or decrease, depending on the fixed costs