EXERCISE 1-10 Identify each of the following statements with fixed costs or variable costs ; EXERCISE 1-11 Indicate whether each of the following costs is most likely a fixed cost or a variable cost

EXERCISE 1-10  Identify each of the following statements with fixed costs or variable costs by writing “fixed” or “variable” in the space provided.

____ a.A cost that varies in total with changes in the activity level.

__     b.A cost that varies on a per-unit basis with changes in the activity level.

_____ c.A cost that remains fixed per unit with changes in the activity level.

_____ d.A cost that remains fixed in total with changes in the activity level.

EXERCISE 1-11  Indicate whether each of the following costs is most likely a fixed cost or a variable cost by writing “fixed” or “variable” in the space provided.

___ a.  Assembly labor.

____ b.  The cost of material used in production.

____ c.  Rent.

___ d.  Depreciation.

____ e.  Fuel cost at an airline.