Chapter 11 Question 4 Which of the following is the best example of a sunk cost? a) Future payments on a leased building. b) Future research and development costs. c) Historical research and development costs. d) Historical noncash expenses. Question 5 For a U.S. corporation with income above $20 million, a) the average tax rate is less than the marginal tax rate. b) the average tax rate is equal to the marginal tax rate. c) the average tax rate is less than the marginal tax rate. d) None of the above. Question 6 Accounting earnings are a reliable measure of the costs and benefits of a project. a) False b) True