Select the Term from the List Provided That Best Matches

question 53

Essay

Select the term from the list provided that best matches each of the following descriptions. Put the number of the term in the column for Your Answer. $\begin{array}{|l|l|l|}\hline \begin{array}{l}\text { Your } \\\text { Answer }\end{array} & \text { Description or Definition } & \text { Term } \\\hline & \begin{array}{l}\text { A. Future oriented costs that differ between business } \\\text { alternatives }\end{array} & 1 . \text { Avoidable costs } \\\hline & \begin{array}{l}\text { B. Costs that can be avoided when a product line or type } \\\text { of service is eliminated }\end{array} & \text { 2. Batch-level costs } \\\hline & \begin{array}{l}\text { C. Costs that are incurred each time a company makes a } \\\text { single product of performs a single service }\end{array} & \text { 3. Differential costs } \\\hline & \begin{array}{l}\text { D. Features such as company reputation, welfare of } \\\text { employees, and customer reaction }\end{array} & \text { 4. Low-ball pricing } \\\hline & \begin{array}{l}\text { E. Items that are future oniented and that differ between } \\\text { the alternatives }\end{array} & 5 \text {. Opportunity costs } \\\hline &\begin{array}{l}\text { F. Setting a selling price low enough to hure customers } \\\text { away from competitors }\end{array} & 6 . \text { Outsourcing decisions } \\\hline &\text { G. Costs that are not relevant for decision making } & \text { 7. Product-level costs } \\\hline & \begin{array}{l}\text { H. Costs that, for example, would include the cost of } \\\text { setting up machinery to produce a specific lot of units }\end{array} & \text { 8. Qualitative characteristics } \\\hline & \begin{array}{l}\text { I. The } \$ 20 \text { variation between Alternative A, which costs } \\\$ 100 \text { and Alternative B, which costs } \$ 80\end{array} & \text { 9. Relevant costs } \\\hline & \begin{array}{l}\text { J. Revenues or cost savings that are sacrified when one } \\\text { alternative is chosen over another }\end{array} & 10 . \text { Relevant information } \\\hline &\begin{array}{l}\mathrm{K} . \text { Deciding to purchase a component that until now has } \\\text { been produced in house. }\end{array} & \text { 11. Sunk costs } \\\hline & \begin{array}{l}\text { L. Future costs that do not have to be incurred if a } \\\text { specified course of action is taken }\end{array} & 12 . \text { Unit-level costs } \\\hline\end{array}$

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Definitions:

Expected Market Rate

The anticipated rate of return that investors predict to receive from the market as a whole over a specific period.

Myopic Behavior

Short-sighted decision-making focusing on immediate benefits rather than considering long-term consequences, often seen in investment choices.

Mean-variance Optimizers

A mathematical process used in finance to construct an investment portfolio that aims to maximize returns for a given level of risk.

Portfolio Beta

A measure of the volatility, or systematic risk, of a portfolio of investments in comparison to the market as a whole.