Depreciation cost is past,or sunk because it represents the cost of equipment that a company has already purchased.

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Depreciation cost is a non-cash expense that reflects the decline in value of an asset over time due to wear and tear, obsolescence, or other factors. Once the company has purchased the equipment, the cost of depreciation is considered a sunk cost because it cannot be recovered or reversed. It is therefore classified as a historical cost or past expense.

Depreciation Cost Is Past,or Sunk Because It Represents the Cost