Examlex
Which of the following statements regarding nonqualified stock options (NQOs) is false?
Sunk Cost
An expenditure that has already been incurred and cannot be recovered, and should not affect future decisions.
Defective Units
Products that fail to meet quality standards or specifications and are often unsellable or subject to returns and repairs.
Salvage Company
A business specialized in saving, recovering, and selling the usable parts of damaged, inoperative, or discarded goods.
Incremental Cost
The additional cost incurred to produce one more unit of a product or service.
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