Matching
Match the following descriptions with the appropriate term.
Premises:
Revenues minus variable costs
Sales minus the variable cost of goods sold
Costs that the segment manager can control
Potential earnings or benefits that are given up because a certain course of action is take
The accounting procedure whereby only variable costs are included in the cost of goods manufactured, and fixed manufacturing costs are written off as expenses in the period in which they are incurred
The difference in cost between one alternative and another
A cost that has been incurred and will not change as a result of a decision
The manufacturing margin minus variable operating expenses
Costs not directly traceable to a specific segment of a business
The accounting procedure whereby all manufacturing costs, including fixed costs, are included in the cost of goods manufactured
Responses:
Absorption costing
Controllable fixed costs
Differential cost
Sunk cost
Manufacturing margin
Opportunity cost
Contribution margin
Direct costing
Common costs
Marginal income
Correct Answer:
Premises:
Responses:
Revenues minus variable costs
Sales minus the variable cost of goods sold
Costs that the segment manager can control
Potential earnings or benefits that are given up because a certain course of action is take
The accounting procedure whereby only variable costs are included in the cost of goods manufactured, and fixed manufacturing costs are written off as expenses in the period in which they are incurred
The difference in cost between one alternative and another
A cost that has been incurred and will not change as a result of a decision
The manufacturing margin minus variable operating expenses
Costs not directly traceable to a specific segment of a business
The accounting procedure whereby all manufacturing costs, including fixed costs, are included in the cost of goods manufactured
Premises:
Revenues minus variable costs
Sales minus the variable cost of goods sold
Costs that the segment manager can control
Potential earnings or benefits that are given up because a certain course of action is take
The accounting procedure whereby only variable costs are included in the cost of goods manufactured, and fixed manufacturing costs are written off as expenses in the period in which they are incurred
The difference in cost between one alternative and another
A cost that has been incurred and will not change as a result of a decision
The manufacturing margin minus variable operating expenses
Costs not directly traceable to a specific segment of a business
The accounting procedure whereby all manufacturing costs, including fixed costs, are included in the cost of goods manufactured
Responses:
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