💡 1. A. To ensure availability of production facilities. – ᤶ ᤷ Incorrect o While fixed manufacturing costs include things like rent for production facilities, their main purpose is not specifically to ensure the availability of facilities but rather to represent costs that do not vary with production volume. These costs are incurred regardless of whether the production facility is being fully utilized or not. 2. B. To decrease direct expenses related to production. – ᤶ ᤷ Incorrect o Fixed manufacturing costs are not designed to decrease direct expenses (such as direct labor or materials). Instead, they are costs that remain constant over time, regardless of how much is produced, and do not directly affect the cost of production per unit. 3. C. To incur stable costs despite operating capacity. – ࿨ ࿩ ࿪ Correct Answer o Fixed manufacturing costs are costs that remain constant regardless of production volume or operating capacity. These costs do not change even if more or fewer units are produced. Examples include rent, salaries of permanent staff, and depreciation of machinery. 4. D. To increase the total unit cost under absorption costing. – ᤶ ᤷ Incorrect o Under absorption costing, fixed manufacturing costs are allocated to the cost of each unit produced. However, their purpose is not to increase the total unit cost but rather to spread the fixed costs over all units produced. If fewer units are produced, the fixed costs per unit may increase, but the purpose of fixed costs is not to artificially inflate unit cost.