arijade5363 arijade5363

12-02-2020
Business

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n unrecoverable cost that should be disregarded in any current or future decision is also called a(n) __________ cost A. variable B. sunk C. implicit D. explicit

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tutordamola tutordamola

13-02-2020

Answer:

The answer is B. Sunk cost

Explanation:

Sunk cost are irrelevant again in business decisions.

A sunk cost has already been incurred. For example, a business that bought a machine which is no longer needed again. When making decisions, it is good to disregard the cost of machine. One cannot change a sunk cost.

Today's decision shud be based on present future cash flows when making investment decisions.

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