Hi-Tech Inc.has several outdated computers that cost a total of $17,800 and could be sold as scrap for $4,600.They could be updated for an additional $2,400 and sold.If Hi-Tech updates the computers and sells them, net income will increase by $9,000.
-What amount would be considered sunk costs?

Question

Quizplus · Accepted Answer

Sunk costs are costs that have already been incurred and cannot be recovered. The $17,800 spent on the outdated computers is a sunk cost.