The Rule for Making Sound Economic Decisions Is That One

question 77

Multiple Choice

The rule for making sound economic decisions is that one should choose the alternative with the

• A)highest contribution margin
• B)lowest opportunity cost
• C)lowest sunk costs
• D)highest revenue

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Definitions:

Book Value

The net value of an asset reported in the financial statements, calculated as the original cost minus any depreciation, amortization, or impairment costs.

Accumulated Depreciation

The cumulative sum of depreciation costs charged to a fixed asset from the time it was first utilized.

Accumulated Depreciation

The aggregate cost of a tangible asset that has been recognized as depreciation since the asset's initial use.

Trading In

The action of exchanging an old product for a discount on a new purchase.