हिंदी

Distinguish between shut down cost and sunk cost.

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प्रश्न

Distinguish between shut down cost and sunk cost.

Give one difference between shut down cost and sunk cost.

अंतर स्पष्ट करें
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उत्तर

  1. Shutdown costs are caused by temporary difficulties, such as a shortage of raw materials, whereas sunk costs result from past decisions that cannot be altered.
  2. While no work is done during the shutdown, fixed costs must still be paid; in contrast, work is done during the sunk cost period.
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Classification of Costs
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