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25 August, 09:00

James overspent and will need to spend the next six months paying off his credit card bill. This money was supposed to have gone into his investment account, which earns 10 percent annually. What type of cost is this 10 percent?

A. opportunity cost

B. sunk cost

C. variable cost

D. credit cost

Answers (1)
  1. 25 August, 10:55
    The type of cost of 10% is a sunk cost. The answer is letter B. Sunk cost is a type of cost that has already been spent and cannot be returned back. In this case, James had overspent his credit card bill, the overspent money cannot be returned back. the consequence of this would be him paying the interest of 10% that is supposedly for his investment.
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