The cost of a computer system installed last year is an example of:
A)a sunk cost.
B)a relevant cost.
C)a differential cost.
D)an avoidable cost.

Question

Quizplus · Accepted Answer

A sunk cost is a cost that has already been incurred and cannot be recovered or changed. The cost of a computer system installed last year is a sunk cost since it has already been paid for and cannot be changed or recovered.

The Cost of a Computer System Installed Last Year Is