The Value of Currently Unused Warehouse Space That Will Be

question 73

Multiple Choice

The value of currently unused warehouse space that will be used as part of a new capital budgeting project is:

• A)an opportunity cost.
• B)irrelevant to the investment decision.
• C)an overhead expense.
• D)a sunk cost.

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Definitions:

Credit Side

The side of an accounting ledger where increases in liabilities, income, and equity are recorded, as well as decreases in assets.

Debit Balance

An accounting entry that shows a company owes money or has an asset; it appears on the left side of a ledger.

Right Side

In accounting, typically refers to the credit side of a double entry bookkeeping system.

Asset Account

A financial account that tracks the value of assets owned by an individual, company, or entity.