Q$4-$ A variable cost is a cost that a$.$ varies per unit at every level of activity. b$.$ occurs at various times during the year. C$.$ varies in total in proportion to changes in the level of activity. d$.$ may or may not be incurred, depending on management's discretion. Q$5-$ A cost which remains constant per unit at various levels of activity is a a variable cost. b$.$ fixed cost. C$.$ mixed cost. d$.$ manufacturing cost. Q$6-$ An increase in the level of activity will have the following effects on unit costs for variable and fixed costs: Unit Variable Cost Unit Fixed Cost a$.$ Increases Decreases b$.$ Remains constant Remains constant c$.$ Decreases Remains constant d$.$ Remains constant Decreases $07-$ A fixed cost is a cost which a varies in total with changes in the level of activity. b$.$ remains constant per unit with changes in the level of activity. C$.$ varies inversely in total with changes in the level of activity. d$.$ remains constant in total with changes in the level of activity. Q$8-$ Fixed costs normally will not include $2.$ property taxes. b$.$ direct labor. C$.$ supervisory salaries. d$.$ depreciation on buildings and equipment.