Pick the true statement

If a cost is fixed, it must be direct

If a cost is fixed, it must be indirect

A fixed cost may be direct or indirect, depending on the cost object

A fixed cost may be direct or indirect, depending on the time period and relevant range

Declining balance depreciation is treated as a

Fixed cost

Variable cost

Mixed cost

Step cost

If the number of units produced increases within the relevant range

Average cost per unit will increase proportionally (e.g., a 10% increase in units results in a 10% increase in average cost per unit)

Average cost per unit will increase, but not proportionally (e.g., a 10% increase in units might only result in a 6% increase in average cost per unit)

Average cost per unit will decrease proportionally (e.g., a 10% increase in units results in a 10% decrease in average cost per unit)

Average cost per unit will decrease, but not proportionally (e.g., a 10% increase in units might only result in a 6% decrease in average cost per unit)