ЁЯУв Too many exams? DonтАЩt know which one suits you best? Book Your Free Expert ЁЯСЙ call Now!

    Question

    Irrelevant and historical cost is _______

    A Sunk cost Correct Answer Incorrect Answer
    B Variable cost Correct Answer Incorrect Answer
    C Notional cost Correct Answer Incorrect Answer
    D Shut down cost Correct Answer Incorrect Answer
    E Capitalized cost Correct Answer Incorrect Answer

    Solution

    Sunk Cost is a cost that has already been incurred and that cannot be recovered . In decision making, sunk costs are treated as bygone and are not taken into consideration when deciding whether to continue an investment project, as such they are irrelevant for decision making.

    Practice Next
    More Cost of Capital and Business Valuations Questions
    ask-question