Buford Company Rents Out a Small Unused Portion of Its

Multiple Choice

Buford Company rents out a small unused portion of its factory to another company for $1,000 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 $1,000 per month is:

A) sunk cost.
B) period cost.
C) opportunity cost.
D) variable cost.