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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
Indirect material scrap is adjusted along with ______.
Which definition best describes indirect costs?
Distinguish between controllable and uncontrollable costs.
Distinguish between shut down cost and sunk cost.
The term "variable costs" refers to ______.
Fixed cost is a cost which ______.
Fixed cost per unit decreases when ______.
Variable cost per unit increases when ______.
A cost that is easily traceable to a cost object is known as ______.
Give an example of Semi-Fixed cost.
