A Cost That Has Already Been Paid, or the Liability

question 270

Multiple Choice

A cost that has already been paid, or the liability to pay has already been incurred, is a(n) :

• A) Salvage value expense.
• B) Net working capital expense.
• C) Sunk cost.
• D) Opportunity cost.
• E) Erosion cost.

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Definitions:

Operational

Referring to the day-to-day activities, processes, and functionalities of a business or organization.

Rate of Interest

The percentage of a sum of money charged for its use, typically expressed as an annual rate.

Account

An arrangement with a financial institution for the deposit and withdrawal of money.

Double Your Money

A colloquial term referring to an investment strategy or opportunity that aims to increase the initial investment by 100%.