Which of the following is not a fixed cost?

A) Property taxes

B) Salary of plant manager

C) Indirect materials

D) Straight-line depreciation

Which of the following statements is correct with respect to variable cost per unit, within the relevant range?

A) They will increase as production decreases.

B) They will decrease as production decreases.

C) They will remain the same as production levels change.

D) They will decrease as production increases.

Which of the following statements is correct with respect to total fixed costs, within the relevant range?

A) They will remain the same as production levels change.

B) They will increase as production decreases.

C) They will decrease as production decreases.

D) They will decrease as production increases.

Which of the following is a characteristic of a variable cost?

A) Variable costs are variable per unit, and fixed in total.

B) Variable costs vary in total with production and sales.

C) Variable costs do not change in total over the relevant range.

D) All of the above are characteristics of variable costs.

Which of the following statements is correct with respect to fixed costs per unit?

A) They will increase as production decreases.

B) They will decrease as production decreases.

C) They will remain the same as production levels change.

D) They will increase as production increases.

An electric bill for corporate headquarters is an example of what type of cost?

A) Variable cost

B) Conversion cost

C) Fixed cost

D) Mixed cost