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Which of the Following Is Mismatched

question 32

Multiple Choice

Which of the following is mismatched?

Calculate manufacturing overhead applied to jobs based on machine hours and labor hours.
Determine total manufacturing costs for jobs.
Compute the selling prices of jobs using markups on manufacturing costs.
Analyze the effects of different costing methods (plantwide vs. departmental) on job costs.

Definitions:

Operating Capacity

The maximum output that a company can produce under normal circumstances over a specific period.

Sunk Costs

Costs that have already been incurred and cannot be recovered, which should not influence future business decisions.

Opportunity Costs

The cost of forgoing the next best alternative when making a decision, representing the benefits an individual, investor, or business misses out on when choosing one alternative over another.

Incremental Revenues

Additional revenue generated from a specific action or decision, comparing the difference in total revenue with and without the action.

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