A cost should be considered sunk when it:
A)Is fully depreciated
B)Produces no additional sales revenues
C)Has no effect on future flows
D)Is replaced by costs that are not yet sunk

Name: A cost should be considered sunk when it: A)Is fully depreciated B)Produces no additional sales revenues C)Has no effect on future flows D)Is replaced by costs that are not yet sunk
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Question

Quizplus · Accepted Answer

A sunk cost is a cost that has already been incurred and cannot be recovered, thus it has no effect on future cash flows or decisions.

A Cost Should Be Considered Sunk When It