A Sunk Cost Is

question 43

Multiple Choice

A sunk cost is:

• A)a cost which may be saved by not adopting an alternative.
• B)a cost which may be shifted to the future with little or no effect on current operations.
• C)a cost which cannot be avoided because it has already been incurred.
• D)a cost which does not entail any dollar outlay but which is relevant to the decision-making process.

Distinguish between extraordinary items and regular operational items in income statements.

Calculate retained earnings adjustments and the impact of errors in previous financial statements.

Understand the requirements and components of the statement of cash flows.

Differentiate between various approaches to reporting financial performance and position.

---

Definitions:

Compound Sentence

A sentence structure that contains at least two independent clauses joined by a conjunction or punctuation.

Specialized Language

Vocabulary and terminology specific to a particular profession, subject, or area of interest.

Jargon

Specialized language used by a particular profession, industry, or group that may be difficult for outsiders to understand.

Imperative

A grammatical mood expressing commands, demands, or requests in a sentence.