The correct option is - 3 ( "Money spent last month repairing a damaged front fender" )
<u>Explanation:</u>
Sunk cost means the cost that has been already incurred in the past and cannot be recovered. This implies that sunk costs should be not be considered in future decision making of the project, because these are the cost that can not be changed with under taking the project or not. The significant aspect about this costs is that they shouldn't be allowed to influence subsequent decisions.
With the theatre ticket example, there's an opportunity to leave the theatre at the intermission and spend the rest of your evening doing something else more enjoyable. If you don't like the play then you might decide to leave, but the sunk cost of the ticket shouldn't influence your decision to stay or leave.
Answer:
debit to Raw Materials of $75,000
Explanation:
In this scenario, the journal entry to record the purchase of raw materials would include a debit to Raw Materials of $75,000. A debit is an entry recording a sum owed, listed on the left-hand side or column of an account. Therefore in accounting, since Gullet Corporation's purchase was for an "additional" $75,000 worth of raw material, they owe that money to the company and must make it up through sales that those materials should generate in the future. That is why it is recorded as a debit.
A bond is a debt instrument. The company or government issuing it borrows your money and pays you a fixed amount of money for the use of the loan you have made available to the company or government. The selling price is usually what the face value of the bond is, but this can vary according to interest rates determined by the Federal Reserve.
A stock is ownership. You own a fraction of the company you've invested in. Sometimes a company pays a dividend. That means that the company has excess funds and decides to pay its shareholders a fraction of what the company brings in. When you buy a stock, you expect to sell it at a higher price than what you bought it at. That's called a capital gain. It's another source of income.
Answer:
claim
/klām/
verb
state or assert that something is the case, typically without providing evidence or proof.
"he claimed that he came from a wealthy, educated family"
Similar:
assert
declare
profess
maintain
state
hold
affirm
avow
aver
protest
insist
swear
attest
argue
contend
submit
move
allege
make out
avouch
asseverate
represent
noun
1.
an assertion of the truth of something, typically one that is disputed or in doubt.
"he was dogged by the claim that he had CIA links"
Similar:
assertion
declaration
profession
affirmation
avowal
averment
protestation
representation
contention
submission
case
allegation
pretense
asseveration
2.
a demand or request for something considered one's due.
"the court had denied their claims to asylum"
Similar:
request
application
demand
petition
call
Explanation:
c. when the price of a good decreases, sellers produce less of the good.
According to the law of supply, an increase in price results in an increase in quantity supplied. This means that there is a direct relationship between price and quantity: Thus, when price of a good falls, sellers produce less
