A Cost That Has Already Been Made and Cannot Be

question 201

Multiple Choice

A cost that has already been made and cannot be recovered is called a

• A) variable cost.
• B) fixed cost.
• C) sunk cost.
• D) marginal cost.

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Definitions:

Express Ratification

The explicit approval or confirmation by a principal of an act or contract performed or entered into on their behalf by an agent.

Restitution

The compensation for loss, damage, or injury required to be paid by the party responsible for causing it, aiming to restore the victim to their original position.

Age of Majority

The legally recognized age at which an individual is considered an adult and responsible for their actions.

Exculpatory Clause

A contract provision that relieves one party from liability for wrongdoing or negligence.