Truman University Is Thinking of Opening an Evening College

question 3

Multiple Choice

Truman University is thinking of opening an evening college. In figuring the cost of such a project, a figure is provided for lighting of parking lots. It is pointed out by the university's finance officer that a city ordinance requires that the parking lots be lighted whether there is an evening college in session or not. Lighting expenses in this case are:

• A)opportunity costs.
• B)alternative costs.
• C)variable costs.
• D)side effects.
• E)sunk costs.

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