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J&P Accounting Purchased New Tax Software Two Years Ago

Question 14

Multiple Choice

J&P Accounting purchased new tax software two years ago. The software is still useable, but faster, more comprehensive software is available. If J&P purchases the new software, the cost of the old software is


A) a sunk cost.
B) an opportunity cost.
C) a terminal expense.
D) an overhead expense.

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