A Sunk Cost Is a Cost That Was Previously Incurred

question 114

True/False

A sunk cost is a cost that was previously incurred and is irrelevant to the decision making process.

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Definitions:

Adequacy of Consideration

The sufficiency of value exchanged in a contract that must be present for the agreement to be legally binding.

Warranty

An express or implied promise by a seller that specific goods to be sold meet certain criteria, or standards of performance, on which the buyer may rely.

UCC

The Uniform Commercial Code, a comprehensive set of laws governing commercial transactions in the United States.

Disclaim Warranties

A statement made by a seller that specifies they are not providing guarantees about the condition or quality of goods being sold.