2. Given below is a numbered list of cost terms. For each of the definition statements that follow, place the number of the cost term in the blank that makes the statement a correct definition. Each cost term is used only once. (2.1)

Numbered List of Cost Terms:
1. Recurring 5. Opportunity 2. Variable 6. Incremental 3. Fixed 7. Direct 4. Sunk 8. Nonrecurring

a. _____ costs are those that have occurred in the past and have no relevance to estimates of future costs and revenues.

b. _____ costs are incurred because of the use of limited resources such that the ability to use those resources to monetary advantage in another way is foregone.

c. _____ costs are those which are unaffected by changes in activity level over a feasible range of operations for the capacity available.

d. _____ costs, in total, change in relation to the quantity of output or other measures of activity level.

e. _____ cost refers to the additional cost that will result from increasing the output of a system by one or more units.

f. _____ costs are those that are repetitive and occur when goods or services are produced on a continuing basis.
g. _____ costs can be reasonably measured and allocated to a specific output or work activity.
h. _____ costs are not repetitive even though the total expenditure may be cumulative over a relatively short period of time.