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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
A firm has to pay a fixed rent of ₹ 500 for the postpaid mobile bill and further pay extra charges for the calls made in a month. Identify the type of cost mentioned here.
Variable cost is a cost that ______.
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.
Which definition best describes indirect costs?
Wages paid to a labour who was engaged in the production activities can be termed as ______.
Distinguish between controllable and uncontrollable costs.
Distinguish between shut down cost and sunk cost.
"Some costs are semi-variable in nature." Comment.
Give an example of Semi-Fixed cost.
Explain with an example, the meaning of variable costs.
