1. All of the following would be classified as product costs except:
A. property taxes on production equipment.
B. insurance on factory machinery.
C. salaries of the marketing staff.
D. wages of machine operators.
2. Within the relevant range:
A. variable cost per unit decreases as production decreases.
B. fixed cost per unit increases as production decreases.
C. fixed cost per unit decreases as production decreases.
D. variable cost per unit increases as production decreases.