If a Firm Has Already Paid an Expense or Is

question 109

Multiple Choice

If a firm has already paid an expense or is obligated to pay one in the future, regardless of whether a particular project is undertaken, that expense is a(n)

• A) incremental cash outflow.
• B) opportunity cost.
• C) sunk cost.
• D) expensible item.

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Definitions:

Mental Ability

The capacity to perform cognitive tasks, process information, and understand complex ideas.

Unions

Represent the interests of employees in an industry, occupation or organisation.

Industrial Relations

Is the process of negotiation and bargaining between employers and employees.

Business Associations

Represent the interests of organisations in an industry or region.