Cornerstones of Cost Management 2nd Edition by Don Hansen ,Maryanne Mowen

Exercise 3

(2010 CPA Exam) Egan Company owns land that could be developed in the future. Egan estimates it can sell the land for $1,200,000, net of all selling costs. If it is not sold, Egan will continue with its plans to develop the land. As Egan evaluates its options for development or sale of the property, what type of cost would the potential selling price represent in Egan's decision?
A) Sunk
B) Opportunity
C) Future
D) Variable