Question 1 -- Short Answer. Ten parts. Each of the first ten questions is worth 4 points each. 1. Define conversion costs. 2. If volume increases, what happens to fixed cost per unit? 3. Define prime costs. 4. What is the formula to calculate operating leverage? 5. What is the distinction between product cost and period costs. 6. If production decreases, what happens to total variable cost? 7. What does the r-square statistic tell you? 8. What is the difference between a dependent variable and an independent variable? 9. What are the three product costs? 10. What is the difference between total manufacturing costs and the cost of goods manufactured?