Asked by
Harrison Macdonald
on Nov 13, 2024Verified
A cost that cannot be changed by any present or future decision is a(n)
A) incremental cost.
B) opportunity cost.
C) sunk cost.
D) variable cost.
Sunk Cost
An expense that is irreversible and non-recoverable, hence it should not affect upcoming corporate choices.
Incremental Cost
The additional cost incurred to produce one more unit of a good or service.
Opportunity Cost
The potential benefit that is missed out on when choosing one alternative over another.
- Identify and differentiate various types of costs, including sunk, incremental, opportunity, and variable costs.
Verified Answer
DN
Learning Objectives
- Identify and differentiate various types of costs, including sunk, incremental, opportunity, and variable costs.
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