A Company Is Considering a New Project That Will Cost

question 83

Multiple Choice

A company is considering a new project that will cost $19,000.This project would result in additional annual revenues of $6,000 for the next five years.The $19,000 cost is an example of a(n) :

• A) Sunk cost
• B) Fixed cost
• C) Incremental cost
• D) Uncontrollable cost
• E) Opportunity cost

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Definitions:

Immanent

Existing or operating within; inherent within the physical world or the universe.

Immanent Justice

The belief, often held by children, that moral behavior is always rewarded and immoral behavior is always punished.

Immediate

Pertaining to something occurring or done without delay.

Heteronomous

Subject to external rules or laws rather than being independent in one's ethics or morality.