A Locked-In Cost Is A(n)

question 33

Multiple Choice

A locked-in cost is a(n) :

• A)cost that can be changed in the short run.
• B)cost that has not yet been incurred but,based on decisions that have already been made,will be incurred in the future.
• C)opportunity cost that is fixed in the short run.
• D)cost that has been incurred,but based on decisions that have already been made,will not be incurred in the future.

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Definitions:

Break-even

A condition where the aggregate of all financial outgoings is identical to the aggregate of all income, resulting in a neutral earnings scenario.

Monthly Unit Sales

The total quantity of products sold by a company in one month.

Selling Price

The amount for which a company offers its goods or services for sale to customers.

Advertising Budget

The total amount of money allocated for promoting products and services to potential customers.