L 1) If an assembly line supervisor is paid a salary of 250 each week regardless of output, this wage could be described as a: A. semi-variable cost B. fixed cost C. variable cost D. step cost 2) An engineering company has hired some specialised equipment for a particular job. Which of the following options is the correct classification of the hire cost? A. Variable production overhead B. Fixed production overhead C. Indirect expense D. Direct expense 3) Which of the following statements is true? A. Total indirect costs are always greater than total direct costs B. An indirect cost will always be a fixed cost C. A particular cost can be a direct cost of one cost object and an indirect cost of a different cost object D. Fixed costs per unit are not affected by the level of activity 4) A purchasing agent has two potential firms from which to buy materials for production. If both firms charge the same price, the material cost is a(n) A. irrelevant cost B. relevant cost C. sunk cost D. opportunity cost 5) When there is one scarce resource, the product that should be produced first is the product with the highest A. contribution margin per unit of the scarce resource. B. sales price per unit of the scarce resource. C. demand. D. contribution margin per unit