Q4
The cost which is to be incurred even when a business unit is closed is a _____.
A.
imputed cost
B.
historical cost
C.
sunk cost
D.
shutdown cost
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
The cost which is to be incurred even when a business unit is closed is a shutdown cost. The shut down price is the minimum price a business needs to justify remaining in the market in the short run.