MULTIPLE CHOICE QUESTIONS: I. 1. As volume decreases, total fixed costs a. are constant and cost per unit decreases b. are constant and cost per unit increases c. increase d. decrease 2. Which of the following is the least likely to be a fixed cost? a. Utilities b. Executive management salaries c. Advertising d. Copier maintenance 3. When a cost changes in total in direct proportion to changes in volume it is a. a semi-variable cost b. a mixed cost c. a variable cost d. a fixed cost 4. Cost behavior analysis is related to a. how costs change as new products are introduced b. how costs change as output changes c. how costs change over time, trending up or down d. all of the above 5. A mixed cost consists of a. both fixed and variable b. either fixed or variable c. product and period d. direct and indirect 6. Which of the following states how a variable cost behaves as volume changes? a. remains constant in total and remains constant per unit b. remains constant in total and changes per unit c. changes in total and remains constant per unit d. changes in total and changes per unit 7. Within the relevant range a, total variable costs decrease as production increases b. fixed costs per unit decreases as production decreases c. total fixed costs remain the same when production increases or decreases d. total variable costs remain the same when production increases or decreases