Mark is an engineer who has designed a telecommunications device. He is convinced that there is a big potential market for the device. Accordingly, he has decided to quit his present job and start a company to manufacture and market the device.Mark purchased a machine two years ago to make experimental boards. The machine will be used to manufacture the new board. The cost of this machine is:
A. a sunk cost
B. a differential cost
C. an opportunity cost
D. a period cost
Answer: A
Business
You might also like to view...
The amount of interest on a 10% note of $600 dated May 7 and due July 18 would be $12.00
a. True b. False Indicate whether the statement is true or false
Business
The direct write-off method frequently results in the bad debt expense being recognized in the year subsequent to the sale, and thus results in a proper matching of expense with revenue
Indicate whether the statement is true or false
Business
Which of the following is defined as the use of intimidation or power in return for a financial benefit?
a. Extortion b. Bribery c. Embezzlement d. Fraud
Business
Pieces of information that exist in reality and not based on theory are called ________
Fill in the blanks with correct word
Business