Costs That Have Already Been Incurred, and Which Cannot Be

question 140

Multiple Choice

Costs that have already been incurred, and which cannot be recovered, are known as

• A)short-run fixed costs.
• B)implicit costs.
• C)unavoidable costs.
• D)sunk costs.

Identify common licenses and copyright terms associated with software and creative works.

Distinguish between different types of intellectual property.

Understand the principles and applications of digital convergence.

Recognize various digital content formats and their purposes.

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Definitions:

Contribution Margin

The residual amount from sales income following the deduction of variable expenses, allocated for covering fixed costs and producing profit.

Variable Costs

Expenses that vary in relation to the amount of production or business activity.

Fixed Costs

Costs that do not change with the level of output produced, such as rent and salaries.

Break-Even Point

The financial analysis term where total costs and total revenues are equal, resulting in no net loss or gain for the business.