Q395
Costs that are unavoidable and remain unchanged no matter what done are classified as
A.
sunk costs
AnswerB.
bunked costs
C.
unrecorded costs
D.
recorded costs
Answer: Option A
Solution
Answer: Option A
Solution:
Costs that are unavoidable and remain unchanged no matter what done are classified as sunk costs. A sunk cost is a cost that an entity has incurred, and which it can no longer recover. Sunk costs should not be considered when making the decision to continue investing in an ongoing project, since these costs cannot be recovered.