Which of the Following Is a Cost of Downtime in Addition

question 134

Multiple Choice

Which of the following is a cost of downtime in addition to lost revenue?

• A)Legal expenses
• B)Loss in financial performance
• C)Damage to reputation
• D)All of the above

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Definitions:

Sunk Cost

A cost that has already been incurred and cannot be recovered, which should not influence future decisions.

Incremental Cost

The additional cost that is incurred by producing one more unit of a good or service.

Opportunity Cost

This represents the benefits an individual, investor, or business misses out on when choosing one alternative over another.

Book Value

The net value of a company's assets minus its liabilities, as recorded on the balance sheet, often compared to its market value.