6. In response to increases in volume, fixed costs will a. Increase per unit b. Increase in total c. Decrease per unit d. Decrease in total e. None of the above 7. Prime costs include a. Direct materials and direct labor b. Direct labor and factory overhead c. Direct materials and factory overhead d. No variable costs e. None of the above 8. Direct costs a. Include only direct materials and direct labor b. Can be easily and conveniently traced to a specified cost object c. Are incurred to support a number of cost objects d. All of the above e. None of the above 9. Product costs include a. Selling costs b. Administrative costs c. All costs involved in acquiring or making a product d. All of the above e. None of the above 10. Absorption costing (GAAP) is based on a. Microeconomics b. Politics c. Cost behavior d. Cost function e. None of the above