17) A variable cost is a cost that A) occurs at various times during the year. B) varies in total in proportion to changes in the level of activity. C) varies per unit at every level of activity. D) may or may not be incurred, depending on management's discretion. 2 Page 18) A fixed cost is a cost which A) varies inversely in total with changes in the level of activity. B) remains constant in total with changes in the level of activity. C) varies in total with changes in the level of activity. D) remains constant per unit with changes in the level of activity. 19) Cost behavior analysis applies to A) wholesalers. C) manufacturers. B) all entities. D) retailers. 20) If the activity level increases 10%, total variable costs will A) increase 10%. C) increase by more than 10%. B) remain the same. D) decrease by less than 10%