Reference no: EM132662182

Problem 1: Which of the following statements regarding variable cost is true?

a) Variable cost increases on a per unit basis as the number of units produced increases

b) Variable cost remains constant on a per unit basis as the number of units produced increases

c) Variable cost remains the same in total as production increases

d) Variable cost decreases on a per unit basis as the number of units produced increases

Problem 2: For which of the following industries would it NOT be appropriate to use process costing?

a) Custom furniture building.

b ) Oil refining

c) Grain milling.

d) Newsprint production.