Which of the Following Statements Is CORRECT

question 56

Multiple Choice

Which of the following statements is CORRECT?

• A) A sunk cost is any cost that must be expended in order to complete a project and bring it into operation.
• B) A sunk cost is any cost that was expended in the past but can be recovered if the firm decides not to go forward with the project.
• C) A sunk cost is a cost that was incurred and expensed in the past and cannot be recovered if the firm decides not to go forward with the project.
• D) Sunk costs were formerly hard to deal with,but once the NPV method came into wide use,it became possible to simply include sunk costs in the cash flows and then calculate the project's NPV.
• E) A good example of a sunk cost is a situation where Home Depot opens a new store,and that leads to a decline in sales of one of the firm's existing stores.

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Definitions:

External Image

The perception of an organization or individual by those outside of it, influenced by public relations, media representation, and other external communications.

Shared Philosophies

Commonly held beliefs, values, and ideologies among a group of individuals or within an organization.

Cultural Routines

Established patterns of behavior or practices that are characteristic of a particular culture or society.

Organizational Culture

The collective values, beliefs, and principles of organizational members, which shapes the organization's practices and behaviors.