Which of the Following Is True of Sunk Costs

question 114

Multiple Choice

Which of the following is true of sunk costs?

• A) not included in initial cash flow
• B) similar to opportunity costs
• C) often combined with terminal cash flow
• D) deciding factor in most project decisions

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Definitions:

80th Percentile

A value below which 80 percent of the data in a data set falls, indicating the upper 20% of values.

Mean

The average of a set of numbers, calculated by summing all numbers in the set and then dividing by the count of numbers.

Standard Normal

A special case of the normal distribution with a mean of zero and a standard deviation of one.

Random Variable

A random variable is a variable whose values depend on outcomes of a random phenomenon, used in probability and statistics to model real-world processes.