Which of the following cost behavior assumptions is true? [1 Mark] (a) Variable costs are constant if expressed on a per unit basis. (b) Total variable costs increase as the level of activity increases. (c) The average fixed cost per unit increases as the level of activity increases. (d) Total fixed costs decrease as the level of activity decreases. Which of the following statements is true? [1 Mark] (a) A common cost is one type of direct cost. (b) A sunk cost is usually a differential cost. (c) Opportunity costs are not usually recorded in the accounts of an organization. (d) A particular cost may be direct or indirect depending on the cost object. Which of the following statements is false? [1 Mark] (a) Absorption costing assigns fixed and variable manufacturing overhead costs to products. (b) Job-order costing systems are used when companies produce many different types of products. (c) A normal costing system assigns costs to products by multiplying the actual overhead rate by the actual amount of the allocation base. (d) A company such as Coca-Cola is more likely to use a process costing system than a job-order costing system. The two principal questions that the owner of a business asks periodically are: (a) What is my ___________________? (b) What is my ___________________?