1.Fixed costs are represented graphically as

Select one:

a.the intersection of the total costs and total revenue lines.

b.starting at zero and increasing as a straight line as activity increases.

c.a horizontal line, staying the same irrespective of the level of activity

d.starting at a given point and increasing as a straight line as activity increases.

2.Which of the following best represents an example of a variable cost?

Select one:

a.Equipment

b.Monthly telephone account

c.Cost of products sold to customers

d.Salary plus commission employees

3.Total Variable costs:

Select one:

a.respond in the opposite direction to changes in volume.

b.change in proportion with changes in volume.

c.do not respond to changes in volume.

d.will always be the same from one period to the next.