Hi-Tech Inc

question 154

Multiple Choice

Hi-Tech Inc.has several outdated computers that cost a total of $17,800 and could be sold as scrap for $4,600.They could be updated for an additional $2,400 and sold.If Hi-Tech updates the computers and sells them, net income will increase by $9,000.
-What amount would be considered sunk costs?

• A)$2,400
• B)$9,000
• C)$17,800
• D)$20,200

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Definitions:

Continuous Improvement

An ongoing effort to enhance products, services, or processes to increase efficiency and quality.

Knowledge Management

The processes using intellectual capital for competitive advantage.

Intellectual Assets

Intangible resources and knowledge that a company possesses, which can include patents, trademarks, business methodologies, and other forms of intellectual property that provide a competitive advantage.

Strategic Force

Denotes a military or organizational capability designed and utilized to achieve strategic objectives, often involving long-range or significant impact operations.