Depreciation on existing equipment is special decision making is regarded as:
A) a variable fixed cost
B) an opportunity cost
C) an avoidable cost
D) a sunk cost

Question

Quizplus · Accepted Answer

Depreciation on existing equipment is a sunk cost, meaning it has already been incurred and cannot be recovered. As such, it is irrelevant when making a decision about future investments or actions.

Depreciation on Existing Equipment Is Special Decision Making Is Regarded