Fixed cost per unit

		Remains constant
		Increases when output increases
		Decreases when output decreases
		Decreases when output increases

Prime costs include:

		direct materials and direct manufacturing labor costs
		direct manufacturing labor and manufacturing overhead costs
		direct materials and manufacturing overhead costs
		only direct materials

Manufacturing overhead costs in an automobile manufacturing plant MOST likely include:

		labor costs of the painting department
		sales commissions
		steering wheel costs
		indirect material costs such as lubricants

Which cost will fall as production is reduced?

		Total variable costs
		Variable costs per unit
		Total fixed costs
		Fixed costs per unit