AB Mining Company Just Commissioned a Firm to Identify If

question 57

Multiple Choice

AB Mining Company just commissioned a firm to identify if an unused portion of their mine contains any silver or gold at a cost of $125,000. This is an example of a(n)

• A) opportunity cost.
• B) sunk cost.
• C) incremental cash flow.
• D) relevant cash flow.

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Definitions:

Queue Discipline

The set of rules determining the order in which tasks are processed, particularly in the context of waiting lines or queues.

Waiting-Line Models

Mathematical models used to analyze the processes and queues in systems where there is demand for service and to predict waiting times and process efficiency.

Operations

Activities involved in the day-to-day running of a business for the purpose of producing value for the stakeholders.

Maintenance Activities

Tasks undertaken to keep equipment or facilities in good working condition and to prevent breakdowns.