A Cost That Has Been Incurred in the Past and Is

question 87

Multiple Choice

A cost that has been incurred in the past and is irrelevant is termed a(n) :

• A) variable cost.
• B) opportunity cost.
• C) differential cost.
• D) sunk cost.

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Definitions:

Fair Market Value

Refers to the price at which an asset would trade in a competitive auction setting, reflecting its value in the eyes of both buyer and seller.

Damages

Compensation sought by or awarded to a party in a lawsuit for losses or injuries incurred due to another party's actions or negligence.

Pleasure Marriage

A temporary marriage contract, recognized in some cultures or religions, primarily aimed at legalizing sexual relations for a determined period.

Premarital Contract

An agreement between individuals planning to marry that outlines the management of their assets and financial matters upon marriage.