Sunk Costs ________

question 86

Multiple Choice

Sunk costs ________.

• A) are future costs for decision making
• B) are avoidable costs
• C) are irrelevant for decision making
• D) are foregone contribution by not using a limited resource in its next-best alternative use

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Definitions:

NSF Check

An NSF check or Non-Sufficient Funds check is a check that cannot be processed due to insufficient funds in the account it's drawn on, leading to a bounced check.

Bank Statement Adjustment

The process of modifying the balance in a company's accounting records for a bank account to match the balance shown on the bank statement, accounting for transactions not yet recorded in the company’s books.

Company Books Adjustment

involves modifying entries in a company's accounting records to correct discrepancies or allocate expenses and revenues to the correct period.

Debit Memos

Notices sent to account holders indicating a decrease in their account balance, typically due to corrections or adjustments for services or goods.