Which of the Following Would Be Considered a Sunk Cost

question 47

Multiple Choice

Which of the following would be considered a sunk cost?

• A) purchase price of new equipment
• B) equipment rental for the production area
• C) net book value of equipment that has no market value
• D) warehouse lease expense

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Definitions:

Employee Turnover

The rate at which employees leave a company and are replaced by new personnel.

Maslow's Need Hierarchy

A theory in psychology proposed by Abraham Maslow, which suggests that people are motivated by five basic categories of needs: physiological, safety, love, esteem, and self-actualization, in ascending order of importance.

Self-Actualization

The realization or fulfillment of one's talents and potentialities, considered as a drive or need present in everyone.

Maslow's Ideas

A psychological theory proposing a hierarchy of human needs, from basic physiological needs to self-actualization.