7.Which of the following statements is true when referring to fixed costs?

Multiple Choice

Fixed costs increase in total throughout the relevant range.

Committed fixed costs arise from the annual decisions by management.

As volume increases, unit fixed cost and total fixed cost will change.

Discretionary fixed costs can often be reduced to zero for short periods of time without seriously impairing the long-run goals of the company.

8 .Which of the following is an example of a period cost in a company that makes clothing?

Multiple Choice

• Advertising cost for a new line of clothing.

• Factory supervisors salary.

• Fabric used to produce mens pants.

• Monthly depreciation on production equipment.