ABC Company is considering using its empty factory for a new project. If the factory...

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Finance

ABC Company is considering using its empty factory for a new project. If the factory is not used for the project, it could be sold for $300,000. This is an example of

Select one:

a. an opportunity cost.

b. an agency cost

c. a sunk cost.

d. a fixed cost.

A company investigating the impact on its net income from a rise or fall in the oil price would most likely conduct

Select one:

a. A scenario analysis

b. A sensitivity analysis

c. A break even analysis

d. A forecasting analysis

A company changing the estimated value of its selling price from $40 per unit to $50 to estimate how much that changes its expected net profit would be example of

Select one:

a. Forecasting analysis

b. Scenario analysis

c. Break even analysis

d. Sensitivity analysis

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