1) Variable costs are costs that vary in total in direct proportion to changes in the activity level

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1) Variable costs are costs that vary in total in direct proportion to changes in the activity level.

True

False

2.     Variable costs are costs that vary on a per-unit basis with changes in the activity level.

True

False

3.     Direct materials and direct labor costs are examples of variable costs of production.

True

False

4.     Total variable costs change as the level of activity changes.

True

False

5.     Unit variable cost does not change as the number of units of activity changes.

True

False

6.     A mixed cost has characteristics of both variable and fixed costs.

True

False