The most valuable investment given up if an alternative investment is chosen is a(n):
A: salvage value expense.
B: net working capital expense.
C: sunk cost.
D: opportunity cost.
A: salvage value expense.
B: net working capital expense.
C: sunk cost.
D: opportunity cost.
举一反三
- The operating expense section of an income statement for a wholesaler would not include A: freight-out. B: utilities expense. C: cost of goods sold. D: insurance expense.
- Opportunity cost of an action is A: the best choice that can be made. B: the money cost. C: the absolute cost. D: the comparative cost. E: the highest-valued alternative forgone.
- Money that has been or will be paid regardless of the decision whether or not to proceed with the project is: A: cannibalization. B: considered as part of the initial investment in the project. C: an opportunity cost. D: a sunk cost.
- After constructing a new factory, the cost of building the factory is a A: past cost. B: sunk cost. C: variable cost. D: None of the above answers are correct.
- Money that a firm has already spent, or committed to spend regardless of whether a project is taken, is called a(n) A: fixed cost. B: opportunity cost. C: sunk cost. D: incremental cost.