A Production Cost That Has Already Been Committed and Cannot

question 87

Multiple Choice

A production cost that has already been committed and cannot be recovered is termed a:

• A) fixed cost
• B) variable cost
• C) sunk cost
• D) total cost

---

Definitions:

Canadian Dollar

The official currency of Canada, symbolized as CAD and often represented by the dollar sign $.

Political Risk

The possibility of expropriation and the unanticipated restriction of cash flows to the parent by a foreign government.

International Corporate Financial Analysis

The assessment of a company's financial health and performance, considering the unique factors of operating in international markets, such as exchange rates and international regulations.

Eurocurrency Market

An international financial market for currencies deposited outside their home markets by governments, corporations, and individuals.