A computer system installed last year is an example of a(n)
A)sunk cost.
B)relevant cost.
C)differential cost.
D)avoidable cost.
E)opportunity cost.

Name: A computer system installed last year is an example of a(n) A)sunk cost. B)relevant cost. C)differential cost. D)avoidable cost. E)opportunity cost.
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Question

Quizplus · Accepted Answer

A computer system installed last year is a sunk cost, as the cost has already been incurred and cannot be recovered. Sunk costs are not relevant for decision-making going forward.

A Computer System Installed Last Year Is an Example of A(n)