When considering the purchase of a new truck, the depreciation expense on the old truck is considered a(n):

Name: When considering the purchase of a new truck, the depreciation expense on the old truck is considered a(n):
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Depreciation expense on the old truck is a sunk cost, meaning it has already been incurred and cannot be recovered. It is not relevant to the decision of purchasing a new truck, as it will not affect future costs.

When Considering the Purchase of a New Truck, the Depreciation