When a Firm Has the Opportunity to Add a Project

question 17

Multiple Choice

When a firm has the opportunity to add a project that will utilize excess factory capacity (that is currently not being used) , which costs should be used to determine if the added project should be undertaken?

• A) Opportunity cost
• B) Sunk cost
• C) Incremental costs
• D) None of the above

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Definitions:

Email

A method of exchanging digital messages over the Internet between people using electronic devices.

Conventions Of Communication

Established norms and rules that govern how communication is conducted within a particular culture or community.

Competitive Advantage

The attributes or capabilities that allow an organization to outperform its competitors.

Corporate Culture

The shared values, behaviors, and practices within an organization that influence its operations and identity.