Incurred Costs That Cannot Be Changed by Any Decision and That

question 59

Multiple Choice

Incurred costs that cannot be changed by any decision and that cannot be recovered best defines

• A)fixed costs.
• B)sunk costs.
• C)failure costs.
• D)designated costs.

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Definitions:

Ending Capital Balance

The amount of money that a company or individual has in their capital account at the end of a fiscal period, after all transactions have been accounted for.

Net Purchases

The total amount of purchases after subtracting any purchases returns, allowances, and discounts.

Withdrawal Account

An account in a partnership or sole proprietorship that records the amounts taken out of the business by the owner for personal use.