Use the Following Information for Questions

question 17

Multiple Choice

Use the following information for questions
Hi-Tech Inc. has several outdated computers that cost a total of $17,800 and could be sold as scrap for $4,600. They could be updated for an additional $2,400 and sold. If Hi-Tech updates the computers and sells them, net income will increase by $9,000.
-What amount would be considered sunk costs?

• A) $2,400
• B) $9,000
• C) $17,800
• D) $20,200

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Definitions:

Conventions

Established norms, rules, or procedures that are widely accepted and followed within a specific context or industry.

Parent Organization

The larger, overarching entity to which a smaller entity or subsidiary is subordinate.

Archived

Pertains to documents or records that have been stored or preserved for historical, legal, or research purposes.

Start-Up Meeting

An initial meeting held at the beginning of a project or engagement to clarify objectives, roles, and procedures among all participants.