Which of the Following Should Typically Be Ignored Because Spending

question 29

Multiple Choice

Which of the following should typically be ignored because spending has already been made and cannot be changed?

• A) variable costs
• B) sunk costs
• C) marginal costs
• D) average marginal costs

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Definitions:

Holding-Period Return

Holding-period return is the total return received from holding an asset or portfolio of assets over a specified period, including interest, dividends, and capital gains.

Dividend

A portion of a company's earnings that is distributed to shareholders, usually in the form of cash or additional shares.

Effective Annual Rate

The actual interest rate an investor receives or pays in a year, taking into account the effect of compounding.

Quarterly Return

The financial return or profit generated by an investment over a three-month period.