Depreciation on a Factory Machine Is an Example of Which

question 74

Multiple Choice

Depreciation on a factory machine is an example of which of the following types of cost?

• A)Variable cost
• B)Sunk cost
• C)Opportunity cost
• D)Period cost

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Definitions:

Bad News Earnings

Reports of lower than expected earnings, often leading to a negative reaction in the stock market and a decrease in company’s share price.

Negative Earnings Surprise

An event where a company's reported earnings are below the expectations of analysts, often leading to a decline in its stock price.

Stock Returns

The income generated from the investment in shares, comprised of dividends received and capital gains or losses.

Exit Price Approach

A valuation method that determines the price a seller would receive to sell an asset or transferred liability.