If a Firm Has Already Paid an Expense or Is

question 109

Multiple Choice

If a firm has already paid an expense or is obligated to pay one in the future, regardless of whether a particular project is undertaken, that expense is a(n)

• A) incremental cash outflow.
• B) opportunity cost.
• C) sunk cost.
• D) expensible item.

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Definitions:

Audio Recordings

Digital or analog created recordings of sound, often used as evidence in court or for personal and professional documentation.

Background Noise

Ambient sound that is present in a scene or environment but is not the focus of attention.

Court

A governmental institution authorized to hear and decide legal disputes and administer justice within its jurisdiction.

Case File

A case file is a collection of documents, evidence, and records pertaining to a specific legal case or investigation.