1. Insurance expense a company pays on their factory is a fixed cost, but insurance expense a company pays on their office building is a variable cost.

1. True
2. False

2. Variable costs have the same unit costs (costs per unit) regardless of the number of units produced.

1. True
2. False

3. Fixed costs have the same total costs regardless of the number of units produced.

1. True
2. False

4. Standard costs are reasonable costs in manufacturing products including normal materials spoilage, labor idle time and machine idle time.

1. True
2. False