"Committed" and "Sunk" Costs Are

question 96

Multiple Choice

"Committed" and "Sunk" costs are:

• A) Generally not fixed.
• B) Generally small in amount.
• C) The result of prior bad decisions.
• D) Not relevant for decision-making.
• E) Recoverable in trade.

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Definitions:

Merit Pay

A pay increase given to employees based on their performance, as a reward for achieving specific goals or outstanding work.

Lump Sums

A one-time payment for a sum of money, rather than a series of payments over time.

Raises

An increase in salary or wages, typically awarded to an employee based on performance, market adjustments, or as part of a promotion.

Merit Pay

A compensation strategy that rewards employees based on their performance and achievements, rather than on seniority or hours worked.