A Sunk Cost Is Described as Which of the Following

A sunk cost is described as which of the following. Accounting questions and answers.

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In the following examples you can clearly see how sunk costs affect decision-making.

. Question 20 of 40 25 points which of the following. Question 20 of 40 25 Points Which of the following best describes a sunk cost A. The effect of a plant closing on employee morale is an example of which of the following.

Sunk costs cause people to think irrationally. A sunk cost is described as which of the following. An important cost to include in the capital budgeting process.

Which of the following best describes a sunk cost. C The costs of electricity and utilities the firm use each month. 5 A sunk cost is described as which of the following.

QUESTION 36 A sunk cost is described as which of the following. Sunk costs should not be considered when making the decision to continue investing in an ongoing project since these costs cannot be recovered. The Sunk Cost Fallacy describes our tendency to follow through on an endeavor if we have already invested time effort or money into it whether or not the current costs outweigh the benefits.

Purchase price of vehicle to be traded in. Which of the following is a sunk cost. A sunk expense is an expense that has already taken place and does not have a chance of recovering shortly.

A historical cost that is always irrelevant. To calculate accurately the opportunity cost of an action we need to first identify the next best alternative to that action. Course Title ECOG 300.

Opportunity costs only measure direct out of pocket expenditures. B A historical cost that is always irrelevant. A form of financing cost.

One that is relevant to a decision because it changes depending on the alternative course of O action selected A historical cost that. Answer Correct Answer Option 2 A Sunk cost is that cost that is a historical cost that is. Sunk costs are ___.

Examples of the Sunk Cost Fallacy. The cash flows of a new project that come at the expense of existing projects. Purchase price of vehicle to be traded in.

It is money that has been spent and is not recoverable. The effect of a plant closing on employee morale is an example of which of the following. Take the following scenario.

Other examples are equipment or machinery that produces only. In economics and business decision-making a sunk cost also known as retrospective cost is a cost that has already been incurred and cannot be recovered. Sunk costs are those costs whose occurrence has already taken in the past years and the same cannot be.

It is based on projected revenue. Sunk costs are contrasted with prospective costs which are future costs that may be avoided if action is taken. Companies dont usually look at sunk costs when.

View the full answer. The examples of Sunk Costs provide an idea to the user about the most common type of Sunk Costs examples present. Which of the following BEST describes a sunk cost.

The opportunity cost of a given action is equal to the value foregone of all feasible alternative actions. Sunk costs that have been expensed for tax purposes. Costs that were incurred in the past and cannot be changed 1.

It is not possible to provide each and every type of example of the sunk cost as there are multiple such Sunk Costs examples. A The costs associated with a massive ad campaign the firm ran last month. A factor that restricts the production or sale of a product D.

Pages 14 Ratings 33 3 1 out of 3 people found this document helpful. A historical cost that is always irrelevant. A sunk cost is a cost that an entity has incurred and which it can no longer recover.

Group of answer choices a cost that has already been incurred and cannot be removed. For instance rental marketing expenses or even money you spend on new equipment could be considered as sunk expenses. B Any future costs associated with future decisions of the firm.

A manufacturing firm for example may have a number of sunk costs such as the cost of machinery equipment and. Instead only relevant costs should be considered. A sunk cost is defined as a cost that has already been incurred and thus cannot be recovered.

Benefits foregone by choosing a particular alternative course of action B. Some previously incurred costs can be sold on for their purchase price and therefore are not considered sunk. A historical cost Cannot be changed regardless of future actions taken All of the items on the list describe a sunk cost.

Tom purchases a movie ticket online for 1250 and upon arriving at the theatres to watch the movie Tom realizes that the movie is really boring and does not appeal to him. Lusk Corporation produces and sells 15100. D A historical cost that may be relevant.

A One that is relevant to a decision because it changes depending on the alternative course of action selected. Fixed costs that may be avoided in the future are referred to as. A sunk cost is described as which of the following.

Sunk costs are independent of any event that may occur in the future. Use the following. A sunk cost can best be described as.

A sunk cost refers to money that has already been spent and cannot be recovered. The lost sales on the older book are a sunk cost and as such should not be considered in the analysis for the new book. D Costs of ingredients the firm uses to make food it sells to customers.

C An outlay expected to be incurred in the future. A non-sunk cost is a cost that will only occur if a particular decision is. A sunk cost is described as which of the following.

Fixed costs that may be avoided in the future are referred to as. A sunk cost is described as which of the following. Which of the following is NOT a relevant cash flow and thus should NOT be reflected in the analysis of a capital budgeting project.

A sunk cost differs from other future costs that a business may face such as inventory costs or RD expenses because it has already happened. Once spent the sunk cost cannot be recovered when the firm leaves the industry. A sunk cost is incurred in the past and cannot be changed.

However many managers continue investing in projects because. In other words a sunk cost is a sum paid in the past that is no longer relevant to decisions about the future. Not relevant in capital budgeting.

Expected future data that differ among alternatives C. The same thing as an opportunity cost. Sunk costs can be described as a cost that has been in the past.

Which of the following is a sunk cost. A historical cost that is always irrelevant. A sunk cost is a cost that has already been spent but is not recoverable in any case and future business decisions should not be affected by past spending.

A sunk cost can be described as which of the following. A historical cost that is always irrelevant. It is money that has been spent but is recoverable.

A sunk cost is an irretrievable cost. Spending on research equipment or machinery buying rent payroll marketing or advertising is the main example of sunk cost. All of the following would be considered in evaluating product or sales mix allocations except.

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