Which of the following defines VC behavior? Total VC reaction to increase in activity VC/unit reaction to increase in activity a. remains constant decreases b. remains constant increases c. increases increases d. increases remains constant 2. Which of the following defines FC behavior? Total FC reaction to increase in activity FC/unit reaction to increase in activity a. remains constant decreases b. remains constant increases c. increases increases d. increases remains constant 3. When predicting cost behavior, the volume of production for which the fixed and variable cost relationships are assumed to hold true is called the: a. relevant cost area. b. regression area. c. dependent variable area. d. relevant range. 4. The cost equation, y = $0 + $5.40x, represents: a. a variable cost. b. a fixed cost. c. a mixed cost. d. a step cost. 5. The cost equation, y = $500 + $0x, represents: a. a variable cost. b. a fixed cost. c. a mixed cost. d. a step cost.