7. Which of the following statements is true for a company that uses variable costing? A. The unit product cost changes because of changes in the number of units manufactured. B. Profit fluctuates with sales. C. Any underapplied overhead is included in the product cost. D. Product costs include variable administration costs. (5%) 8. Which of the following costs at a manufacturing company would be treated as a product cost under the absorption costing method? A. sales commissions B. fire insurance cost on factory building C. advertising costs D. All of these (5%) 9. Assuming that direct labor is a variable cost, product costs under variable costing include only: A. direct materials and direct labor. B. direct materials, direct labor, and variable manufacturing overhead. C. direct materials, direct labor, variable manufacturing overhead, and variable selling and administrative expenses. D. direct material, variable manufacturing overhead, and variable selling and administrative expenses. (5%) er