The Value of a Previously Purchased Machine to Be Used

question 32

Multiple Choice

The value of a previously purchased machine to be used by a proposed project is an example of:

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

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Definitions:

Credit

An accounting entry that either decreases assets or increases liabilities and equity on a company's balance sheet.

Salaries Expense

The total amount of salary payments made to employees, recognized as an expense in the accounting period in which the employees' services are rendered.

Office Salaries

Office Salaries refer to the compensation provided to employees who perform administrative duties within an office.

Accounts Payable

Money owed by a company to its suppliers or creditors for goods and services received but not yet paid for.