A Company Is Considering a New Project That Will Cost

question 7

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 5 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:

Tears

A clear liquid secreted by the lacrimal glands of the eye to lubricate the eyes and protect them from foreign particles.

Vitreous Humor

A clear gel that fills the space between the lens and the retina of the eyeball.

Presbyopia

A condition associated with aging in which the eye exhibits a progressively diminished ability to focus on near objects.

Myopia

A vision condition in which close objects are seen clearly but distant objects appear blurred.