Which of the Following Is an Example of a Sunk

question 59

Multiple Choice

Which of the following is an example of a sunk cost?

• A) Overhead costs that are associated with a project
• B) Interest expense associated with a project
• C) Market study expenses incurred in order to decide if a firm should accept a project
• D) Depreciation expenses associated with a project

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Definitions:

Positive Economics

The branch of economics that concerns the description and explanation of economic phenomena.

Consequences

The outcomes or effects that stem from a particular action or decision, which can be intended or unintended and positive or negative.

Stability

The condition of an economy characterized by constant or predictable levels of growth, inflation, and employment.

Steady Rate

A constant or unchanging rate over a period of time, often used to describe economic growth, inflation, or other financial metrics.