TF 1. Cost behavior is the manner in which a cost changes as a related activity changes. TF 2. Variable costs per unit are costs that do not vary with changes in the activity base T F 3. Direct labor is an example of a fixed cost. TF 4. Cost-Volume-Profit Analysis is the examination of the relationships among selling price, sales and production volumes, costs, expenses, and profits. TF 5. Contribution margin is sales minus fixed costs