Match the following. List-I List-II a. Absorption costing 1. . . . . . . . . is a logical extension of marginal costing. b. Fixed expenses 2. . . . . . . . . is a valuable adjust to standard costing and budgetary costing. c. Marginal costing 3. Contribution = . . . . . . . . + Profit. d. Break-even analysis 4. . . . . . . . . is not very helpful in taking managerial decisions.

The correct answer is: A. a-4, b-3, c-2, d-1

• Absorption costing is a method of accounting that assigns all manufacturing costs, both fixed and variable, to products. This is in contrast to marginal costing, which only assigns variable costs to products.
• Fixed expenses are expenses that do not change in total with changes in the level of output. For example, rent is a fixed expense because it is the same regardless of how many units are produced.
• Marginal costing is a method of accounting that assigns only variable costs to products. This is in contrast to absorption costing, which assigns both fixed and variable costs to products.
• Break-even analysis is a technique used to determine the level of output at which a company will break even, or neither make nor lose money.

Here is a more detailed explanation of each option:

• Option A: a-4, b-3, c-2, d-1. This is the correct answer because it matches the definitions of each term with the correct statement.
• Option B: a-2, b-1, c-4, d-3. This is incorrect because it matches the definition of fixed expenses with the statement about break-even analysis.
• Option C: a-3, b-2, c-4, d-1. This is incorrect because it matches the definition of marginal costing with the statement about break-even analysis.
• Option D: a-4, b-3, c-1, d-2. This is incorrect because it matches the definition of break-even analysis with the statement about fixed expenses.