Match Each Statement with the Correct Item Below

question 12

Multiple Choice

Match each statement with the correct item below.
-Opportunity cost

• 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:

Arbitrage

The simultaneous buying and selling of the same commodity or security in two different markets at different prices, thus pocketing a risk-free return.

Capital Structure

The mix of a company's long-term debt, specific short-term debt, common equity, and preferred equity, which is used to finance its overall operations and growth.

Common Share Equity

The amount of money that would be returned to shareholders if a company's assets were liquidated and all its debts repaid, representing ownership in a corporation.

Dividend Income

Income received from owning shares in a company, typically distributed from the company's profits.