Use the Following Information for Questions

question 17

Multiple Choice

Use the following information for questions
Hi-Tech Inc. has several outdated computers that cost a total of $17,800 and could be sold as scrap for $4,600.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:

Job Evaluation

A systematic process for assessing the relative worth of jobs within an organization to establish fair compensation.

Salaries and Wages

Financial compensation provided to employees for their labor, with salaries typically being a fixed annual amount and wages being based on hours worked.

Overtime Provisions

Regulations that govern the compensation for employees who work beyond the standard working hours, often entailing higher rates of pay.

Fair Labor Standards Act

A United States federal law that sets minimum wage, overtime pay eligibility, recordkeeping, and child labor standards for full-time and part-time workers.