A cost that requires a cash disbursement is called a(n)
A) sunk cost.
B) opportunity cost.
C) outlay cost.
D) common cost.

Question

Quizplus · Accepted Answer

A cost that requires a cash disbursement is referred to as an outlay cost. Sunk costs are expenditures that have already been incurred and cannot be changed or recouped, whereas opportunity costs are the cost of losing the next best alternative. Common costs are shared costs for multiple products or services.

A Cost That Requires a Cash Disbursement Is Called A(n)