Q532
Cost which has occurred already and not affected by decisions is classified as
A.
sunk cost
AnswerB.
occurred cost
C.
weighted cost
D.
mean cost
Answer: Option A
Solution
Answer: Option A
Solution:
Cost which has occurred already and not affected by decisions is classified as sunk cost. A sunk cost is a cost that has already been incurred and cannot be recovered. A sunk cost differs from future costs that a business may face, such as decisions about inventory purchase costs or product pricing.