Which Item Is Not an Example of a Sunk Cost

question 35

Multiple Choice

Which item is not an example of a sunk cost?

• A)materials needed for production
• B)purchase cost of machinery
• C)depreciation
• D)All are sunk costs.

---

Definitions:

Defibrillator Product

A medical device used to deliver a dose of electric current (shock) to the heart to treat life-threatening cardiac dysrhythmias.

Present Value

Today's value of a future money sum or cash flow sequence, calculated using a predetermined return rate.

Lifecycle

The series of stages that an entity—such as a product, project, or individual—goes through during its existence, from inception to termination or renewal.

Marginal Cost

The increase or decrease in the total cost that arises from producing one additional unit of a product or service.