Which of the Following Is the Term for a Cost

question 121

Multiple Choice

Which of the following is the term for a cost that does NOT change in total despite wide changes in volume?

• A) Fixed cost
• B) Variable cost
• C) Mixed cost
• D) Sunk cost

---

Definitions:

WACC

Weighted Average Cost of Capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is proportionately weighted, including all sources of capital like equity, debt, and any other funding sources.

WACC

Refers to the Weighted Average Cost of Capital, a method to determine a company's capital cost where each type of capital is weighted according to its proportion.

Project Risk

The potential for losses or negative outcomes on a project due to various factors such as cost overruns, underperformance, or market changes.

Equity Financing

A method of raising capital by selling company shares to investors, thereby offering them a portion of the ownership.