Match Each of the Following Terms with Their Correct Description

question 15

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.
-The benefit given up when one alternative is chosen over another

• 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:

Plant Assets

Long-term tangible assets used in the operation of a business and not expected to be consumed or converted into cash in the short term.

Depreciated

The decrease in the value of an asset over time due to wear and tear, age, or obsolescence, typically accounted for on financial statements through depreciation expense.

Salvage Value

The anticipated market value of an asset at the conclusion of its utility period.

Declining-Balance Method

A method of accelerated depreciation where an asset loses value at a faster rate in its early years of use.