Which of the Following Costs Would You Consider When Making

question 86

Multiple Choice

Which of the following costs would you consider when making a capital budgeting decision?

• A)sunk cost
• B)opportunity cost
• C)interest expense
• D)fixed overhead cost
• E)past research and development expenditures

---

Definitions:

Cannibalization

When a company's new product eats into the sales of one of its existing products.

Disruptive Technology

An innovation that significantly alters the way consumers, industries, or businesses operate, often displacing established technologies.

Sales Volume

The quantity of products or services sold by a company within a specific period, often used to measure business performance.

Decline Stage

The stage of the product life cycle characterized by decreases in sales and profits.