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

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Definitions:

Examine If Closed

A control system operation that checks whether a specific circuit or contact is in a closed (energized) state.

Examine If Open

Examine If Open is a control logic command used in programming, often in PLCs, to check if a circuit or contact is open before executing further instructions.

Output Energize

A control logic action used in programmable logic controllers (PLCs) to activate an output device.

Input Energize

The process by which an input signal activates or powers a circuit or device.