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Zoe heard a child on the playground singing, "fa la fa la fa la." Later that evening while the family was eating dinner Zoe started singing, "fa la fa la fa la" just the way she heard it earlier in the day. Zoe is demonstrating:
Incremental Overhead
The additional indirect costs incurred due to a change in business activities, such as an increase in production volume.
Income Taxes
Taxes levied by a government directly on income, especially an annual tax on personal or corporate earnings.
Sunk Costs
Sunk costs are expenses that have already been incurred and cannot be recovered.
Opportunity Costs
The forfeiture of possible benefits from different options when selecting one option over the others.
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