A cost should be considered sunk when it:
A) produces no additional sales revenues.
B) has no effect on future flows.
C) is replaced by costs that are not yet sunk.
D) is fully depreciated.
Answer: B) has no effect on future flows.
Business
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Wastage occurs if higher price buyers have to be turned away because the capacity has already been committed to lower price buyers
Indicate whether the statement is true or false.
Business
Which of the following represents the pay rate differences for jobs and employee contributions of unequal worth to a company?
A) merit pay B) incentive pay C) retention pay D) pay structures
Business