1. Products are completed in the manufacturing process 2. Sunk costs 3. Factory overhead applied to the production process 4. Book value of a team 5. Opportunity cost 6. Operating leverage 7. Contribution margin 8. Margin of safety 9. Factory overhead incurred to credit 10. Credit sales 11. Manufacturing costs are added to the productive process 12. Purchase of materials on credit 13. Break even point 14. Requisition of materials 15. The expense of the finished products is recognized and sold 16. incremental analysis A. Evaluate the impact of two alternative courses of action on the income of the company B. Materials Inventory Accounts Payable C. Income and expenses are exactly the same amount D. Finished Goods Inv. Work-in-Process E. Cost of Goods Sold Finished Goods F. Factory Overhead Accounts Payable G. Costs previously incurred and that are not relevant in relation to future decisions H. Work in Process Materials Inventory 1. Accounts Receivable Sales Revenue J. Example of a "sunk cost" K. Measures the relationship between contribution margin and income from operations L. The benefit foregone when an alternative is selected in contrast to another available option M. Work-in-Process Factory Overhead N. Work in process Materials Inventory Wages Payable (direct labor) Factory Overhead O. Indicates how much sales revenue can be reduced without the company incurring a loss P. Difference between selling price and variable costs of the product