Match Each of the Following Terms with Their Correct Description

question 17

Multiple Choice

Match each of the following terms with their correct description from the items listed below.* Each term may be used more than once, and it is possible that one or more of the classifications may not be used at all.
-Past costs that cannot be affected by future decisions

• A)Differential cost
• B)Keep-or-drop decision
• C)Constraints
• D)Decision-making model
• E)Split-off point
• F)Joint products
• G)Make-or-buy decision
• H)Target costing
• I)Sunk costs
• J)Markup
• K)Special-order decision
• L)Sell-or-process-further decision
• M)Relevant costs
• N)Opportunity cost
• O)Cost-based pricing

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Definitions:

Activity-based Costing

An accounting method where overhead and indirect costs are allocated to the corresponding products and services based on the required activities.

Floral Bouquets

Arrangements of flowers, typically designed and prepared by florists, that are sold for various occasions such as weddings, celebrations, or as gifts.

Plantwide Overhead Rate

A single rate used to allocate all of a plant's manufacturing overhead costs to its products or cost objects, regardless of the department in which the costs were incurred.

Activity-based Costing

A costing method that first assigns costs to activities and then to products based on each product’s use of activities.