Matching
Select the term from the list provided that best matches each of the following descriptions.
Premises:
Future oriented costs that differ between business alternatives
Costs that can be avoided when a product line or type of service is eliminated
Costs that are incurred each time a company makes a single product or performs a single service
Features such as company reputation, welfare of employees, and customer reaction
Items that are future oriented and that differ between the alternatives
Setting a selling price low enough to lure customers away from competitors
Costs that are not relevant for decision making
Costs that, for example, would include the cost of selling up machinery to produce a specific lot of units
The $20 variation between Alternative A, which costs $100 and Alternative B. winch costs $80
Revenues or cost savings that are sacrified when one alternative is chosen over another
Deciding to purchase a component that until now has been produced in house.
Future costs that do not have to be incurred if a specified course of action is taken
Responses:
Avoidable costs
Batch-level costs
Differential costs
Low-ball pricing
Opportunity costs
Outsourcing decisions
Product-level costs
Qualitative characteristics
Relevant costs
Relevant information
Sunk costs
Unit-level costs
Correct Answer:
Premises:
Responses:
Future oriented costs that differ between business alternatives
Costs that can be avoided when a product line or type of service is eliminated
Costs that are incurred each time a company makes a single product or performs a single service
Features such as company reputation, welfare of employees, and customer reaction
Items that are future oriented and that differ between the alternatives
Setting a selling price low enough to lure customers away from competitors
Costs that are not relevant for decision making
Costs that, for example, would include the cost of selling up machinery to produce a specific lot of units
The $20 variation between Alternative A, which costs $100 and Alternative B. winch costs $80
Revenues or cost savings that are sacrified when one alternative is chosen over another
Deciding to purchase a component that until now has been produced in house.
Future costs that do not have to be incurred if a specified course of action is taken
Premises:
Future oriented costs that differ between business alternatives
Costs that can be avoided when a product line or type of service is eliminated
Costs that are incurred each time a company makes a single product or performs a single service
Features such as company reputation, welfare of employees, and customer reaction
Items that are future oriented and that differ between the alternatives
Setting a selling price low enough to lure customers away from competitors
Costs that are not relevant for decision making
Costs that, for example, would include the cost of selling up machinery to produce a specific lot of units
The $20 variation between Alternative A, which costs $100 and Alternative B. winch costs $80
Revenues or cost savings that are sacrified when one alternative is chosen over another
Deciding to purchase a component that until now has been produced in house.
Future costs that do not have to be incurred if a specified course of action is taken
Responses:
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