Depreciation of equipment is an example of a(n)
A)relevant cost.
B)opportunity cost.
C)sunk cost.
D)variable cost.
E)none of these.

Question

Quizplus · Accepted Answer

Depreciation is a sunk cost because it represents the historical cost of the equipment which has already been incurred and cannot be recovered or changed. It is not relevant to current decision making and is not an opportunity cost or variable cost.

Depreciation of Equipment Is an Example of A(n)