Question 1: (8 points) A1.CI Multiple Choice Questions. 1. An example of a period cost is a. Advertising costs. b. Indirect materials c. Product design costs. d. Direct materials. 2. As production increases, what should you expect to happen to the fixed costs per unit? a. Increase b. Decrease c. Remain the same d. Either increase or decrease, depending on the variable cost 3. Which of the following costs is considered overhead? a. Indirect labor only b. Indirect materials only c. Indirect materials and indirect labor d. None of these 4. Given the following cost and activity observations for Leno Enterprises' utilities, use the high-low method to calculate Leno's variable utilities cost per machine hour. Cost Machine Hours October 3,700 18.000 November 3.900 19.000 December 4,500 28.000 a. 0.08 b. 4.86 c. 0.25 d. 12.50 5. A performance management and evaluation system is a set of procedures that account for and report on a. Qualitative performance b. Quantitative performance. c. Employee performance. d. Quantitative and qualitative performance. 6. Many organizations utilize responsibility accounting a. to assist in building performance measures for the organization. b. to assist in performance management and evaluation. c. solely to evaluate how well employees are handling their responsibilities. d. as an alternative to generally accepted accounting principles. 7. A variable costing income statement is the same as a. a contribution margin income statement. b. a traditional income statements. c. a cost-volume-profit income statement. d. none of these choices. 8. A pricing method based on product cost is a. Cost of goods sold pricing. b. Net income pricing. c. Gross margin pricing. d. Inventory pricing