Full costs of a product are the sum of ________.
A) fixed costs and sunk costs in all the business functions of the value chain
B) variable costs and sunk costs in all the business functions of the value chain
C) all variable and fixed costs in all the business functions of the value chain
D) fixed costs, variable costs, and sunk costs in the value chain

Question

Quizplus · Accepted Answer

Full costs of a product include all variable and fixed costs in all the business functions of the value chain. Sunk costs are not included in the calculation of full costs because they are costs that have already been incurred and cannot be recovered.

Full Costs of a Product Are the Sum of ________