Which of the Following Is an Example of a Sunk

question 17

Multiple Choice

Which of the following is an example of a sunk cost?

• A)materials needed for production
• B)purchase cost of machinery for production
• C)labour for production
• D)supplies for production

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Definitions:

Receiving

The process of accepting delivery of goods, verifying them against purchase orders, and formally acknowledging possession.

Cashier's Check

A check issued by a bank, drawn on its own funds rather than that of a personal account, ensuring the availability of funds.

Drawer

The party that writes or creates a bill of exchange, such as a check, directing a drawee to pay a specified sum to a payee.

Drawee

The party, typically a bank, upon whom a check or draft is drawn and is expected to pay the stated amount.