Sunk Costs Are the Resources Previously Committed to a Program

question 44

True/False

Sunk costs are the resources previously committed to a program that make it impossible for the department to enact changes in current procedures.

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Definitions:

Maintenance Margin

The minimum amount of equity that must be maintained in a margin account after a purchase has been made, to keep the account open.

Long Futures Position

Holding a futures contract that obligates the buyer to purchase the underlying asset at a specified price on a specified future date, typically anticipating a price rise.

Levered Investment

Levered Investment involves using borrowed funds in addition to one's own investment capital to enhance the potential return of an investment.

Long Stock Position

The ownership of shares in a company with the expectation that they will increase in value over time.