Solved

Match Each of the Following Terms with the Best Definition

Question 2

Matching

Match each of the following terms with the best definition given.

Premises:
Normal selling price
Variable cost concept
Setup
Engineering Change Order
Total cost concept
Responses:
Changing tooling when preparing for a new product.
Target selling price to be achieved in the long term.
Includes manufacturing cost plus selling and administrative expenses.
Variable manufacturing costs plus variable selling and administrative costs are included in cost per unit.
A document that initiates a product or process change.

Correct Answer:

Variable cost concept
Variable manufacturing costs plus variable selling and administrative costs are included in cost per unit.
Normal selling price
Target selling price to be achieved in the long term.
Setup
Changing tooling when preparing for a new product.
Total cost concept
Includes manufacturing cost plus selling and administrative expenses.
Engineering Change Order
A document that initiates a product or process change.
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