Metals prices have since declined precipitously and the, Ask an Expert

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Cobra Mining Company spent $200 million five years ago to develop underground mining and milling operations in a remote area of a western state. Metals prices have since declined precipitously and the company is considering abandoning the operation. The term that would best describe the $200 million expenditure when considering the abandonment decision is:

A) sunk cost.

B) variable cost.

C) differential cost.

D) opportunity cost

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M972134

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