Match Each of the Following Terms with Their Correct Description

question 45

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.
-When a company calculates product cost then adds the desired profit

• 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:

Related Selling Activities

Marketing and sales actions directly associated with closing a sale, including advertising, promotions, and direct sales efforts.

Ordering Merchandise

The process of securing inventory for sale by placing orders with manufacturers or wholesalers.

Making a Sale

The process of transferring goods or services to a customer for a price, generating revenue for a business.

Bonding Personnel

The process of providing a financial guarantee through a bond that protects against losses from dishonest acts or failures of employees.