Sunk Costs

question 54

Multiple Choice

Sunk costs:

• A) can be ignored because they have no effect on marginal costs.
• B) should be taken into consideration when choosing the best level of an activity.
• C) should not be ignored because they lead to higher marginal costs.
• D) can be ignored because they don't have to be paid by the decision maker.

Recognize the patterns of inflation over time concerning various investment types.

Understand the origins and purposes of early writing systems.

Recognize the impact and development of bronze metallurgy.

Identify specialized labor in ancient civilizations.

---

Definitions:

Balance Carried

The amount of money or value transferred from the end of one financial statement or period to the beginning of another.

Adjusted Cash Balance

The cash balance resulting after certain adjustments are made, such as for outstanding checks or deposits in transit.

Check Register

A record book or ledger that tracks all checks written, deposits made, and current balance of a checking account, aiding in personal financial management.

Bank Statement

A document provided by a bank that summarizes an account's transactions and balances over a specified period.