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:

Curve Of Forgetting

A graph showing a distinct pattern in which forgetting is very fast within the first hour after learning a list and then tapers off gradually.

Ebbinghaus

A psychologist known for his research on memory and the forgetting curve, the decline of memory retention over time.

Retrieval Period

The timeframe during which a memory or piece of information is recalled or retrieved from the storage after learning.

Decay Theory

A theory of forgetting that proposes that memories may fade or erode over time in the absence of rehearsal or usage.