A Cost That Has Already Been Incurred and Cannot Be

question 69

Multiple Choice

A cost that has already been incurred and cannot be changed is called a(n) :

• A)Opportunity cost.
• B)Out-of-pocket cost.
• C)Joint cost.
• D)Sunk cost.

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Definitions:

Profit

The profit achieved when the revenue from a business operation surpasses the expenses, costs, and taxes required to maintain it.

Production Function

A mathematical model detailing how inputs are converted into outputs in the production process.

Labor

Human work, encompassing both physical and mental tasks, dedicated to the manufacturing of goods and services.

Output

The amount of goods or services produced by a company, industry, or country over a certain period.