The term that refers to costs incurred in the past that are not relevant to a decision is:
A) marginal cost.
B) indirect cost.
C) period cost.
D) sunk cost.

Question

Quizplus · Accepted Answer

Sunk costs are costs that have already been incurred and cannot be recovered. They are not relevant to a decision because they cannot be changed or avoided regardless of the choice made. Marginal costs are the additional costs incurred by producing one more unit or making a specific decision. Indirect costs are costs that cannot be directly attributed to a specific product or service. Period costs are expenses that are not directly related to the production of goods and services, such as administrative expenses.

The Term That Refers to Costs Incurred in the Past