Sunk Costs

question 112

Multiple Choice

Sunk costs:

• A)cannot be estimated accurately.
• B)represent an initial period of cash flow of a capital budgeting project.
• C)have been incurred in prior periods.
• D)None of the above

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Definitions:

Total Credits

In accounting, the sum of all credit entries recorded, representing increases in liabilities, revenue, or equity.

Consolidated Income

The total net income of a parent company and its subsidiaries, after accounting for the share of income pertaining to noncontrolling interests.

Subsidiaries

Companies that are owned or controlled by another company, known as the parent company, through a majority of the voting stock.