Ask Question
BusinessBusiness
23 July, 17:59

A sunk cost is described as which of the following? A. An outlay expected to be incurred in the future B. One that is relevant to a decision because it changes depending on the alternative course of action selected C. A historical cost that is always irrelevant D. A historical cost that may be relevant

+5
Answers (1)
  1. 23 July, 18:03
    0
    Answer: Option C

    Explanation: In simple words, sunk cost refers to the cost that a company has already incurred and cannot recover it in future in any way for example - market research cost before introducing a product in the market.

    No matter whether the organisation takes the prospective project or not these costs are not recoverable, hence they are considered to be irrelevant with respect to decision making.

    Hence we can conclude that the correct option is C.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “A sunk cost is described as which of the following? A. An outlay expected to be incurred in the future B. One that is relevant to a ...” 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
Why is total consumer service so important?
Answers (1)
Given the thinker / leadership theory / decision-making paradigm that you've adopted and defended thus far, compose an essay, 3-5 pages in length, in which you, after describing your position, acknowledge and describe the various shortcomings,
Answers (1)
1. If the government decides to subsidize the production of a good, the result would be a decrease in the equilibrium price and a decrease in the equilibrium quantity. true or false
Answers (1)
Which are common types of bonds that are currently issued? Check all that apply. corporate bonds equity bonds municipal bonds Treasury bills Treasury notes war bonds
Answers (2)
Genetics Medical Research is at the forefront of developing diagnostic tests using genetically modified chemicals and radiation.
Answers (1)
New Questions in Business
If I swallow 3 tons of white liquid and ratika swallows only 7 kilograms who swallows more?
Answers (2)
Which of the following regarding preferred stock is true? the price in the market remains at par if the required rate of return increases, the price decreases if the price decreases, required rate of return has decreased if the required rate of
Answers (1)
Consider this scenario: a company that buys a sizeable amount of equipment for its manufacturing process needs to accurately report such expenditures, so it calls upon the services of financial auditors.
Answers (1)
Under the Uniform Commercial Code (UCC), a firm offer applies to: a. an unlimited, stipulated period of time. b. a written, signed offer by a merchant to buy or sell goods. c. a written, signed offer by anyone to buy or sell goods. d.
Answers (1)
The economic principle that states that individuals or nations can gain by specializing in the production of goods that they produce cheaply and exchanging for other desired goods that they could only produce at a higher cost is
Answers (1)
Home » Business » A sunk cost is described as which of the following? A. An outlay expected to be incurred in the future B. One that is relevant to a decision because it changes depending on the alternative course of action selected C.
Sign Up Forgot Password?