A Company Spends $20 Million Researching Whether It Is Possible

question 48

Multiple Choice

A company spends $20 million researching whether it is possible to create a durable plastic from the process waste from feedstock preparation.How should the $20 million best be considered?

• A)as a sunk cost
• B)as an opportunity cost
• C)as a fixed overhead expense
• D)as a capital cost
• E)as a project externality

---

Definitions:

Rhetorical Situation

The context of a rhetorical act, made up of a rhetor, an audience, and a message, that influences the strategy and effectiveness of communication.

Purpose

The reason for which something is done or created, or for which something exists.

Circumstances

The conditions or facts affecting the event or situation at hand.

Arc

A curve with a continuous part of a circle or other curved line.