Which of the Following Would Be an Example of a Sunk

question 39

Multiple Choice

Which of the following would be an example of a sunk cost?

• A)The cost of a new oil burner that replaced a destroyed one
• B)The cost of an old inefficient oil burner that will be replaced by a more modern and efficient one
• C)Depreciation expense
• D)Lost revenue from a bad debt

Recognize the importance of gender, ethnicity, class, and other social factors in language variation.

Understand the definition and calculation of risk premium in the investment context.

Grasp the concept of diversification and how it impacts risk management in portfolios.

Recognize the importance of considering the probability of various economic scenarios in the expected return of a portfolio.