
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
- 2. Variable
- 3. Fixed
- 4. Sunk
- 5. Opportunity
- 6. Incremental
- 7. Direct
- 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.

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