Which of the Following Statements Is True Concerning Sunk Costs

question 170

Multiple Choice

Which of the following statements is true concerning sunk costs?

• A)They are the total costs of any asset that has been purchased in the past.
• B)They are the total costs of any asset,less depreciation,that has been purchased in the past.
• C)It is another term for depreciation.
• D)They have zero opportunity costs.

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Definitions:

Physical World

The material universe that includes all of the physical objects and forces that interact within it.

Proven

Demonstrated to be true or effective through empirical evidence or logical reasoning.

Scientific Paradigm

A framework containing all the commonly accepted views about a subject, a set of assumptions, concepts, values, and practices that constitutes a way of viewing reality for the community that shares them, especially in an academic discipline.

Accepted View

The commonly or widely held belief or opinion on a particular matter.