Costs That Have Been Incurred as a Result of Past

question 80

Multiple Choice

Costs that have been incurred as a result of past decisions are known as ________ costs.

• A) sunk
• B) variable
• C) fixed
• D) opportunity
• E) marginal

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Definitions:

Associated Company

A firm in which another company owns a significant stake but not a controlling interest, usually between 20% and 50% of the voting shares.

Board of Directors

A group of individuals elected by shareholders to oversee the management and governance of a corporation.

Shareholders

Individuals or entities that own shares in a corporation, giving them certain rights and a stake in the company's performance.

Journal Entry

A record in accounting that shows the financial transactions of a company in terms of debits and credits.