A Company Is Expanding and Has Already Signed a Lease

question 25

Multiple Choice

A company is expanding and has already signed a lease on new office space that costs $10,000 per month.The company also needs a new information system and hired a consultant to recommend new software.The consultant was paid $5,000 for her recommendation.Now the company is trying to make a choice between three competing software products.In the capital budgeting decision to purchase new software,the monthly rent for the office space is ________ and the consultant's fee is ________.

• A) a sunk cost; a sunk cost
• B) an opportunity cost; a sunk cost
• C) incremental cash outflow; an opportunity cost
• D) a sunk cost; a part of the initial outlay

Distinguish between different processing methods in accounting and their significance.

Identify the importance and process of reporting financial information accurately.

Grasp the fundamental concepts and processes within a computerized accounting system.

Understand the impact of e-commerce on business operations and accounting practices.

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Definitions:

Migrant Workers

Individuals who move from their home region or country to another place to seek employment, often in temporary or seasonal jobs.

Intercultural Communicator

An individual skilled in exchanging information effectively across different cultures, understanding and respecting diversity.

Global Business

Business activities that transcend national borders, involving transactions, partnerships, and operational strategies worldwide.

Franchise

A licensing arrangement whereby an individual or group is granted the right to operate a business under the established brand and business model of another entity.