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Relevant Costing for Management Decisions

Chapter 23
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Across
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Cost that is the potential benefit lost by taking a specific action when two or more alternatives are available
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Companies that are not able to control prices and must sell at market prices (2 words)
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Additional revenue generated by selecting a certain course of action over another
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Companies that have unique products or well-known brands and have control in setting prices (2 words)
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Amount added to the cost of a product
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Buying goods or services from an external supplier
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Expenses the company would not incur if it eliminated the segment
Down
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Costing = Expected selling price - Desired profit
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Additional costs incurred if a company pursues a certain course of action
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Costs that would continue even if the segment were eliminated
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Method of costing were management sets price equal to the product's total costs plus a desired profit on the product (2 words)
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Cost that arises from a past decision and cannot be avoided or changed
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Pricing that varies depending on changing market conditions or customer demand