A Company Is Considering a New Project That Will Cost

question 7

Multiple Choice

A company is considering a new project that will cost $19,000. This project would result in additional annual revenues of $6,000 for the next 5 years. The $19,000 cost is an example of a(n) :

• A) Sunk cost.
• B) Fixed cost.
• C) Incremental cost.
• D) Uncontrollable cost.
• E) Opportunity cost.

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Definitions:

Public Policy

Principles and standards that guide government actions and decisions to ensure they benefit the public as a whole.

Tort

A tort is a civil wrong or injury, other than a breach of contract, that causes harm to another, leading to legal liability for the person who commits the tortious act.

Crime

An action or omission that constitutes an offense and is punishable by law.

Illegal Substance

A drug or other material that is forbidden by law to possess, use, or distribute.