The Term That Refers to Costs Incurred in the Past

question 215

Multiple Choice

The term that refers to costs incurred in the past that are not relevant to a decision is:

• A) marginal cost.
• B) indirect cost.
• C) period cost.
• D) sunk cost.

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Definitions:

Expenditure Programs

Government policies focused on spending in specific areas such as health, education, and infrastructure to promote economic growth and welfare.

National Defense

Governmental and military activities aimed at protecting a country and its citizens from external threats and ensuring national security.

Efficiency

The optimal allocation of resources to maximize the production of goods and services.

Equity

The value of an asset after deducting what is owed on it, or the ownership interest in a company as held by shareholders.