A Cost That Has Already Been Incurred and Cannot Be

question 40

Multiple Choice

A cost that has already been incurred and cannot be recouped is referred to as a(n) _____ cost.

• A)sunk
• B)relevant
• C)opportunity
• D)financial
• E)side

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Definitions:

Wood

The hard, fibrous structural tissue found in the stems and roots of trees and other woody plants.

Cost Function

A mathematical relationship that describes how the costs incurred by a firm vary with the level of output or activity.

Output

Refers to the quantity of products or services produced by a business, industry, or economy.

Marginal Cost

The increase in total cost that arises from an increase in production by one additional unit.