A Cost That Has Already Been Incurred and Cannot Be

question 85

Multiple Choice

A cost that has already been incurred and cannot be recovered is known as a(n) _____

• A) sunk cost.
• B) opportunity cost.
• C) direct cost.
• D) implicit cost.
• E) explicit cost.

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Definitions:

Lead Time

The period between the initiation and completion of a production process.

Standard Deviation

A statistical measure that quantifies the amount of variation or dispersion of a set of data values from the mean (average) of the data set.

Service Level

A measure of the quality of service provided, often expressed as a percentage, indicating how well a service meets customer expectations or agreed-upon standards.

Lead Time

The total time taken from the initiation of a process or order to its completion.