Match Each Statement with the Correct Item Below

question 124

Multiple Choice

Match each statement with the correct item below.
-Special-order decision

• 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:

Contribution Margin

The contribution margin represents the portion of sales revenue that is not consumed by variable costs and contributes to covering the company's fixed costs.

Depreciation Expense

A technique in accounting for distributing the expense of a physical asset across its usable life.

Fixed Costs

Expenses that do not change with the level of activity or output over a short period, such as rent, salaries, and insurance premiums.

Operating Leverage

A measure that evaluates the extent to which a firm can increase its profits by increasing sales, highlighting the fixed versus variable costs in operations.