The Fact That the Face of a Friend Looks the Same

question 152

Multiple Choice

The fact that the face of a friend looks the same whether you are viewing it up front or from the side is best accounted for by:

• A) proximity constancy.
• B) perceptual habituation.
• C) shape constancy.
• D) brightness constancy.

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Definitions:

Sunk Cost

A cost that has already been incurred and cannot be recovered.

Stand-Alone Principle

A method of evaluating investment projects as if they were the only project the company is undertaking, assessing their viability on their individual merits.

Depreciation Tax Shield

The reduction in income tax that results from the allowance for depreciation, which can be considered a non-cash expense that decreases taxable income.

Equivalent Annual Cost

Equivalent annual cost is a financial analysis tool used to compare the cost effectiveness of different projects or investments with differing lifespans by calculating their equivalent cost per year.