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प्रश्न
Explain the following:
Sunk cost
Write Short note on:
Sunk cost
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उत्तर
Sunk Costs are costs that have already been incurred in the past and cannot be recovered, regardless of future decisions. Examples include investments in plant, machinery, buildings, or any other expenditure that cannot be reversed. Since these costs cannot be changed by future actions, they are irrelevant for decision-making. Sunk costs should not influence current decisions, as they cannot be recovered, and only future costs and benefits should guide decisions.
Notes
Students should refer to the answer according to the question.
संबंधित प्रश्न
Distinguish between Fixed cost and Variable cost.
The cost remains same at all levels of output is called ______ cost.
Which cost decreases with increase in the volume of output?
Which of the following cost is time based?
It refers to the expenses incurred on those items which are not directly chargeable to production. Salaries of timekeeper, foremen and watchmen are examples of this cost. This cost is incurred for the concern as a whole rather than a particular product.
Distinguish between direct costs and indirect costs.
Variable cost per unit increases when ______.
"Some costs are semi-variable in nature." Comment.
Give an example of Semi-Fixed cost.
Explain with an example, the meaning of variable costs.
