Sunk Cost Are Classified as

question 187

Multiple Choice

Sunk cost are classified as

• A)Irrelevant.
• B)Avoidable.
• C)Opport
• D)None of these ans choices are correct.

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Definitions:

Parent Company

A corporation that owns more than 50% of the voting stock of another company, giving it control of the subsidiary's operations and strategic direction.

Voting Stock

Shares that give the shareholder the right to vote on company matters, such as electing the board of directors.

Fair Value

The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Equity Methods

An accounting technique used for recording investments in associate companies where the investor has significant influence but does not have full control or majority ownership, typically implying ownership of 20% to 50% of the voting stock.