Required:

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.

b$.$ 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.

g$.$ 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.

i$.$ Costs that are relevant to short$-$term decision making.

j$.$ Resource that is insufficient to meet the demands placed on it$.$

k$.$ Step $1$ of the management decision$-$making process.

Costs that are 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.

o$.$ Costs that change across decision alternatives.

p$.$ Step $3$ of the management decision$-$making process.

$\backslash$table$[[$Term$,$Definition$],[1.$ 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,$]]$