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1. Which one of the following is a variable cost for an insurance company?

1. rent
2. sales commissions
3. property taxes
4. amortization of office equipment

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2. Costs incurred at which of the following activity levels should NOT be allocated to products for decision-making purposes?

1. Organization-sustaining activities.
2. Batch-level activities.
3. Product-level activities.
4. Unit-level activities.

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3. Arranging for a shipment of a number of different products to a customer is an example of an activity at which of the following levels?

1. Customer-level activity.
2. Unit-level activity.
3. Batch-level activity.
4. Organization-sustaining activity.