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question 67

Multiple Choice

[The following information applies to the questions displayed below.]
Express,Inc. ,is considering replacing equipment.The following data are available:

-Which of the data above is a sunk cost?

• A)The annual cost of operating the new equipment.
• B)The annual cost of operating the old equipment.
• C)The disposal value of the old equipment.
• D)The original cost of the old equipment.

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Definitions:

Top Management

The highest level of organizational management, including positions such as CEO, CFO, and other senior executives responsible for overall strategic direction and decision-making.

Longer-term Plans

Strategic objectives or projects that are intended to be achieved over an extended period of time.

Focus

The concentration of attention or energy on a specific object, task, or goal.

Time Horizon

The length of time over which an individual, group, or organization views or plans for future events.