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Match the Following Costs with Their Descriptions

question 10

Multiple Choice

Match the following costs with their descriptions.
I. Controllable expenses A. Carefully predetermined costs
II. Standard costs B. Costs which are eliminated if a department is closed
III. Avoidable costs C. Expenses that cannot be directly traced to a cost object
IV. Indirect expenses D. Expenses which can be influenced by a manager


Definitions:

Total Profits

The financial gain obtained after subtracting total costs from total revenue over a period.

Marginal Revenue

The boost in income resulting from the sale of one more unit of a product or service.

Market Price

The existing value at which an asset or service might be acquired or disposed of on the open market.

Marginal Revenue

The incremental revenue procured by selling an extra unit of a product or service.

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