1.) A company paid an architect $25,000 for design plans. The company elected to start over with the planned project and engaged a new architect to design new plans. The $25,000 is considered a (select one)

a. sunk cost

b. wasted cost

c. relevant cost

d. not yet expended cost

2.) A company elected to expand their craft beer product labels, instead of distributing more of their existing labels. In hindsight, they would have earned a higher return focusing on distributing more of their existing craft beer labels. This is an example of opportunity cost.

Select one:

True

False

3.) Risk is created when we cannot be certain of a future outcome or event.

Select one:

True

False