Which of the Following Is an Example of Sunk Costs

question 79

Multiple Choice

Which of the following is an example of sunk costs?

• A) wages to security staffs
• B) cost of purchasing raw materials
• C) cost of an alternative investment
• D) wages payable to skilled laborers to make a product

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Definitions:

Investment Turnover

A financial ratio that measures the efficiency with which a company utilizes its assets to generate revenue.

Over Budget

A situation where actual spending exceeds the anticipated or planned budget allocation.

Invested Assets

Assets that are purchased or acquired for the purpose of generating income or appreciation.

Operating Income

A company's profit after subtracting operating expenses, such as wages and cost of goods sold, from its gross revenue.