Match Each Statement with the Correct Item Below

question 104

Multiple Choice

Match each statement with the correct item below.
-Keep-or-drop decision

• A)The difference in total cost between the alternatives in a decision
• B)Determines whether or not a segment should be kept or dropped
• C)Limited resources and limited demand for each product
• D)A specific set of procedures that produces a decision
• E)The point that products that have common processes and costs of production become distinguishable
• F)CHOICE BLANK
• G)CHOICE BLANK.
• H)Method of determining the cost of a product based on the price that customers are willing to pay Decisions involving a choice between internal and external production Products that have common processes and costs of production up to a point
• I)Past costs that cannot be affected by future decisions
• J)A percentage applied to the base cost to cover other costs plus profit
• K)Determines whether a specially priced order should be accepted or rejected
• L)Determines whether it is more profitable to process a joint product further
• M)Future costs that differ between alternatives
• N)CHOICE BLANK..
• O)When a company calculates product cost then adds the desired profit The benefit given up when one alternative is chosen over another

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Definitions:

Expense Items

Costs incurred by a business or individual in the course of achieving income or maintaining operations, such as rent, salaries, or utilities.

Component Parts

Individual items that are put together to form a product or can be used as part of a more complex assembly.

Raw Materials

Basic materials from which products are made, typically unprocessed or only slightly processed and used in the manufacturing or production process.

Component Parts

Individual pieces or elements that, when combined, form a complete product or system.