Which of the following would be a deduction in arriving at a company's net sales as reported on the income statement? (Select all that apply.)

a. Sales discounts.

b. Sales allowances.

c. Estimated bad debts allowance.

d. Sales returns.

e. Shipping and handling (paid by the seller).

The variable cost per unit depends on how many units are produced.

True

False

Once a company has shipped goods to a customer, it can recognize revenue regardless of the shipping terms.

True

False

The relevant range concept is applicable to fixed costs, but not to variable costs

True or false

Dizzy Amusement Park is open from 8:00 am till midnight every day of the year. Dizzy charges its patrons a daily entrance fee of $30 per person which gives them unlimited access to all of the park's 35 rides.

For liability insurance, Dizzy pays a set monthly fee plus a small additional amount for every patron entering the park. The cost of liability insurance would best be described as a

a. Variable cost.

b. Step cost.

c. Fixed cost.

d. Mixed cost.