1. The total variable cost increases in direct proportion to volume. True or False

2. The higher the magnitude of a companys operating leverage, the more benefit the company will receive from a given percentage increase in revenue. True or False.

3. If a company shifts its cost structure by decreasing fixed costs and increasing variable costs, it will lower both the level of risk and its potential for profits. True or False.

4. A cost that is considered variable for one activity base may be considered fixed for a different activity base. True or False.