Eva pays $3.000 per month to rent her house. She has a garage but is considering turning the space into a hair styling studio. She expects to earn $3.000 a month from this new business. Instead, she could sublease the garage space to a neighbor for $800 per month. As part of the terms of sublease, her neighbor will pay an additional $100 per month for utilities. All other costs are unaffected. Eva is now analyzing the costs and benefits of these alternatives. Help Eva in her analysis by identifying the following items as either a relevant cost or irrelevant cost in the decision. 1. The rent paid on the house 2. The earnings from the hair styling studio 3. The cost of home insurance 4. The cost of utilities 5. The monthly income from renting the garage A number of terms and concepts from this chapter and a list of descriptions, definitions, and explanations follow. For each term (1-12) listed below.choose at least one corresponding item (a-p) below. Note that a single term may have more than one description and a single description may be used more than once or not at all. (a) Short-term management decision made using differential analysis. (6) Management decision in which lost revenue is compared to the reduction of costs to determine the overall effect on profit. (c) Exists when a company has not yet reached the limit on its resources. (d) Costs that have already been incurred. (e) Management decision in which fixed manufacturing overhead is ignored as long as there is enough excess capacity to meet the order. (f) Costs that can be avoided by choosing one option over another. (8) Step 5 of the management decision-making process. (h) Management decision in which relevant costs of making a product internally are compared to the cost of purchasing that product. (1) Costs that are relevant to short-term decision making. 6) Resource that is insufficient to meet the demands placed on it. (k) First step of the management decision-making process. (1) costs that are always irrelevant to management decisions. (m) Exists when a company has met its limit on one or more resources. (n) Benefits given up when one alternative is chosen over another. (0) Costs that change across decision alternatives. (P) Step 3 of the management decision-making process. 1. Excess capacity. 2. Identify the decision problem. 3. Bottleneck. 4. Special-order decision. 5. Differential costs. 6. Evaluate the costs and benefits of alternatives. 7. Make-or-buy decision 8. Sunk costs. 9. Opportunity costs. 10. Keep-or-drop decision. 11. Full capacity 12. Avoidable costs