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:

Financial Statements

Formal records of the financial activities and position of a business, individual, or other entity.

Disclosures

The act of making new or secret information known, typically in a formal report.

Financial Accounting Standards Board (FASB)

The private sector body given the primary responsibility to work out the detailed rules that become generally accepted accounting principles.

Securities and Exchange Commission (SEC)

A U.S. government agency that oversees securities transactions, activities of financial professionals, and the stock market to protect investors.