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:

Experiencing Depression

Going through a period marked by intense feelings of sadness, hopelessness, and a lack of interest or pleasure in activities.

Conceptualized

The process of forming a concept or idea by combining various elements of understanding or knowledge.

Self-Control

The capacity to manage one's feelings, thoughts, and actions when confronted with desires and impulses.

Conscientiousness

A personality trait characterized by organization, dependability, and a strong sense of duty.