Below are some financial data for the Do Drop In convenience store.
The owners have put $40,000 into the business and they worked a total of 80 hours during the week.Savings accounts are currently paying 5.2% interest and the going wage rate is $8 per hour.
-What is the term for the historical costs of buying plant,machinery and equipment that have no current resale value?

Question

Below are some financial data for the Do Drop In convenience store.
  The owners have put $40,000 into the business and they worked a total of 80 hours during the week.Savings accounts are currently paying 5.2% interest and the going wage rate is $8 per hour.
-What is the term for the historical costs of buying plant,machinery and equipment that have no current resale value?

Quizplus · Accepted Answer

Sunk costs are the historical costs of buying plant, machinery, and equipment that have no current resale value. These costs cannot be recovered and are not considered in decision making for future investments. Therefore, choice A is the correct answer.

There is no other question or data available to provide multiple choices or answers.

Below Are Some Financial Data for the Do Drop in Convenience