A Cost That Will Not Be Affected by Later Decisions

question 154

Multiple Choice

A cost that will not be affected by later decisions is termed a(n) :

• A) period cost
• B) differential cost
• C) sunk cost
• D) replacement cost

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Definitions:

Stock Split

The division of a company's existing stock into multiple shares to boost the liquidity of the shares.

Total Market Value

The cumulative value of all of a company's shares of stock, or the overall value of a particular market or sector.

Typical Level

The standard or average condition, degree, or amount for something, usually established over time through observation or measurement.

Residual Dividend Policy

A strategy where dividends are paid out of the remaining net income after meeting the company's investment needs.