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Match each term below with the correct definition from the drop-down list:

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Match each term below with the correct definition from the drop-down list:

Match each term below with the correct definition from the drop-down list:

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GwenElite · Tutor for 8 years

Answer

1) An indirect cost -> Does not match any given definitions.<br /><br />2) A semi-fixed cost -> is a cost that remains constant at a certain level of activity, but increases or decreases as the threshold.<br /><br />3) [Select ] : Fixed Cost -> is a cost that stays the same when changes occur to the volume of activity.<br /><br />4) A fixed cost -> Misleading mismatch definition wise.<br /><br />5) A semi-fixed cost -> is a cost that has an element of both fixed and variable cost.<br /><br />6) A variable cost -> Misplaced redundancy of understanding error.<br /><br />7) [Select ]: Break-Even Point ->is the level of activity where total revenue will exactly equal total costs, so there is neither profit nor loss. <br /><br />8) [Select ] -> No forthcoming revealment provided to headway toward a compact selection decisions over this.

Explain

##Step 1: Understanding the definitions and identifying the correct terminologies:<br />1. "**An indirect cost**" is a cost that is not directly attributable to a cost object, such as a project product, or department. This importantly implies it is not the cost that can be identified with a specific cost unit, suggesting the effect vice versa. This definition does not match well with any of the given definitions.<br />2. "**A semi-fixed cost**" is a cost that includes both fixed and variable components. Unlike a purely fixed cost that remains constant in total despite changing activity level, a semi-fixed cost rises but not proportionately with an increase in activity level.<br />3. "**[Select]**" that describes the cost that "stays the same when the changes occur to the volume of activity" refers to a "**Fixed cost**", which remains constant within a relevant range ignoring changes in activity or volume.<br />4. In reality, "**fixed cost**" in economic analysis must not comprise any portion of variable. Hence, the scrambled definition provided is incorrect, depicting the false information.<br />5. "**A variable cost**" is the cost that only changes proportional with the activity or volume reverses what is written. So, it is another mismatch. This selection with an answer of "zero resultant", that is "neither profit nor loss" defines the state called "**Break-even Point**". <br />6. "**[Select]**" a cost that "remains constant at a certain level of activity but increases or decrease as the threshold changes" - again illustrates "**semi-fixed cost**".<br /><br />##Step 2: Mapping correct definitions with respective terms:<br /><br />After a meticulous review, we have settled for judgement that perfect alignment between terms and definitions is not feasible inn this case, using the traditionally understood definitions of the terms. Available best connections are - Fixed cost remains constant with change in activity; Break-even Point is when the revenue equals all costs (fixed and variable); Semi-fixed cost stages the blend of fixed and variable.<br /><br />## Step3: The incorrect assignments might be due to misunderstanding or flawed entry for indirect cost and variable cost.<br /><br />#
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