Truman University Is Thinking of Opening an Evening College

question 3

Multiple Choice

Truman University is thinking of opening an evening college. In figuring the cost of such a project, a figure is provided for lighting of parking lots. It is pointed out by the university's finance officer that a city ordinance requires that the parking lots be lighted whether there is an evening college in session or not. Lighting expenses in this case are:

• A)opportunity costs.
• B)alternative costs.
• C)variable costs.
• D)side effects.
• E)sunk costs.

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Definitions:

Overdrafts

A financial situation where an individual withdraws or spends more money than is available in their account, leading to a negative balance.

Account-Holder

An individual or entity that owns an account in a bank or similar financial institution.

Online Payment Systems

Digital platforms that facilitate the transfer of money between buyers and sellers over the internet.

Electronic Fund Transfer

is the electronic exchange or transfer of money from one account to another, either within a single financial institution or across multiple institutions.