ne order kely be accepted. d. the order will likely be rejected. 3. Which of the following is a value-added activity? a) engineering design b) machinery repair c) inventory storage d) inspections 4. Examples of fixed costs include all but one of the following: a) cost of factory rent for the 12-month contract term. b) cost of Ahmad's apartment rent during his 3rd year of university. c) cost of a car rental which includes a fee per km driven. d) a one-week rental of a carpet cleaning machine. 5. The relevant range can be commonly understood to mean: a) the normal range of output (activity) within which the company operates. b) the range wherein tixed costs are always fixed. c) the range wherein variable costs are strictly curvilinear. ictly proportional to the level of activ 6. Fixed costs a) vary in total as activity varies. b) vary on a per unit basis as activity varies. c) are unpredictable. d) none of the above. 7. Mixed costs are a) costs with both indirect and direct elements. b) costs with both product and period elements. c) costs with both fixed and non-variable elements. d) none of these. (2/6)