Atlanta Motors Atlanta Motors Is Trying to Decide Whether It

Multiple Choice

Atlanta Motors Atlanta Motors is trying to decide whether it should keep its existing car washing machine or purchase a new one that has technological advantages (which translate into cost savings) over the existing machine. Information on each machine follows:
Refer to Atlanta Motors. The $4,000 of annual operating costs that are common to both the old and the new machine are an example of a(n)

A) sunk cost.
B) irrelevant cost.
C) future avoidable cost.
D) opportunity cost.