Which of the Following Is an Example of Sunk Costs

question 79

Multiple Choice

Which of the following is an example of sunk costs?

• A) wages to security staffs
• B) cost of purchasing raw materials
• C) cost of an alternative investment
• D) wages payable to skilled laborers to make a product

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Definitions:

Income Statement Amounts

The monetary values of revenue, expenses, gains, and losses reported in the income statement.

Common-Size Percentages

Financial analysis tool that converts each line item of financial statements into a percentage of a common base figure to allow for easy comparison.

Balance Sheets

Financial statements that show a company's financial position, detailing assets, liabilities, and equity at a specific point in time.

Inventory Turnover

A ratio indicating how many times a company's inventory is sold and replaced over a period.