Match Each Statement with the Correct Item Below

question 105

Multiple Choice

Match each statement with the correct item below.
-Target costing

• A)the difference in total cost between the alternatives in a decision
• B)determine 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)method of determining the cost of a product based on the price that customers are willing to pay
• G)decisions involving a choice between internal and external production
• H)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)determine whether a specially priced order should be accepted or rejected
• L)determine whether it is more profitable to process a joint product further

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Definitions:

MACRS

Stands for Modified Accelerated Cost Recovery System, which is a method of depreciation used for tax purposes in the United States that allows for faster depreciation of assets.

Capital Expenditure

Capital utilized by a firm for the procurement or refurbishment of solid assets including real estate, production plants, or hardware.

Plant Assets

Long-term tangible assets that are used in the production of goods and services, such as machinery, buildings, and equipment.

Depreciation

The process of allocating the cost of a tangible asset over its useful life, reflecting wear and tear, obsolescence, or age.