All of the statements below relate to variable and fixed costs. Check all the statements below that are true. (Hint: This is not a typical multiple choice question. You should select more than one answer below)

Check All That Apply

An example of a fixed cost would be the cost of gas you put into your car each month

A variable cost changes in proportion to changes in volume of activity

An example of a variable cost would be the direct labor used for a bakery specializing in making wedding cakes

The total amount of a fixed cost each period does not change in proportion to volume of activity, but the amount of a fixed cost per unit does change in proportion to volume of activity

The total amount of a variable cost each period does not change in proportion to volume of activity, but the amount of a variable cost per unit does change in proportion to volume of activity