Ask Question
BusinessBusiness
13 March, 08:35

A sunk cost is:A) a cost that may be saved by not adopting an alternative. B) a cost that may be shifted to the future with little or no effect on current operations. C) a cost that cannot be avoided because it has already been incurred. D) a cost which does not entail any dollar outlay but which is relevant to the decision-making process.

+1
Answers (1)
  1. 13 March, 08:50
    0
    Answer: The correct answer is "C) a cost that cannot be avoided because it has already been incurred.".

    Explanation: Sunk costs are those costs that have already been incurred and cannot be recovered in the future.

    Example: Suppose a company wants to launch a new product for which it has commissioned a market study whose cost is $ 5000.

    Once the market study is obtained, the company is not convinced that the product will be successful. When analyzing the decision The first thing to recognize that the expenses incurred ($ 5000) are sunk costs, will not be recovered and therefore should not influence the decision about the product.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “A sunk cost is:A) a cost that may be saved by not adopting an alternative. B) a cost that may be shifted to the future with little or no ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Most activities in contemporary life have become more formalized because: A. there has been an increase in complex organizations. B. there has been a decrease in complex organizations. C. the traditional organization structure has become obsolete. D.
Answers (1)
2.) Since 2005, publicly traded companies in the European Union have been required to use IFRS in preparing their consolidated financial statements. a.) Explain the EU's objective in requiring the use of IFRS. b.
Answers (1)
How did "sagebrush rebels" feel about the federal government?
Answers (1)
Ilsa is part of a team working on a project. Vanessa's role on the team is to update and present status reports to management.
Answers (1)
Explain the hierarchy of controls in risk management and how you would use these control measures.
Answers (1)
New Questions in Business
A leftward shift in the long-run aggregate supply curve is most likely going to cause which of the following? A) decrease in the average price level B) increase in the average price level C) increase in real output
Answers (1)
Free market economy how are prices set?
Answers (1)
Patel Service Co. does make a few sales on account but is mostly a cash business. Consequently, it uses the direct write-off method to account for uncollectible accounts. During Year 1, Patel Service Co.
Answers (1)
Accepting a special order will improve overall net operating income if the revenue from the special order exceeds: a. the contribution margin on the order. b. the incremental costs associated with the order. c.
Answers (1)
The debit side of an account a. depends on whether the account is an asset, liability, or owner's equity b. is the left side of the account c. can be either side of the account depending on how the accountant set up the system d.
Answers (1)
Home » Business » A sunk cost is:A) a cost that may be saved by not adopting an alternative. B) a cost that may be shifted to the future with little or no effect on current operations. C) a cost that cannot be avoided because it has already been incurred.
Sign Up Forgot Password?