Which of the following should not be included in a schedule of cash flows from operations when evaluating a capital project?

Question

Quizplus · Accepted Answer

Sunk costs are costs that have already been incurred and cannot be recovered, thus they should not be considered when evaluating future cash flows. All other options (fixed costs, depreciation and amortization, variable costs) are relevant cash flow components that should be included in the evaluation.

Which of the Following Should Not Be Included in a Schedule