As part of its expansion project,A.J.Industries Equipment Division has expanded its office space by 200 square feet.The company's administrative overhead is allocated based on the square footage of each business segment.Although the total administrative overhead for the company will remain the same,the Equipment Division will be charged more for administrative overhead.For the Equipment Division expansion project,the administrative overhead is an example of a(n)

Question

Quizplus · Accepted Answer

The administrative overhead is a sunk cost because it is a cost that has already been incurred and cannot be recovered.

As Part of Its Expansion Project,A