Which of the Following Is an Example of a Sunk

question 220

Multiple Choice

Which of the following is an example of a sunk cost, as it relates to a firm?

• A)an expenditure on raw materials used in the production process
• B)an expenditure on a nonrefundable, nontransferable airline ticket
• C)an expenditure to buy a delivery van
• D)an expenditure for a new factory

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Definitions:

Social Position

An individual's or group's status within the structure of a society, often determined by factors such as occupation, income, and education.

Jobs

Positions of employment where individuals perform specific tasks in exchange for monetary compensation, benefits, or both.

Employment Relations

The study and practice concerning the management and regulation of work relationships, including aspects of bargaining, rights, and obligations of employers and employees.