Kizspy | Question: 7
(Choose 1 answer)
Buford Company rents out a small unused portion of its factory to another company for USD1,000 per month.
The rental agreement will expire next month, and rather than renew the agreement Buford Company is thinking
about using the space itself to store materials. The term to describe the USD1,000 per month is:
A. sunk cost.
B. period cost.
C. opportunity cost.
D. variable cost.
