Which item is NOT an example of a sunk cost?
A)materials needed for production
B)purchase cost of machinery
C)depreciation
D)all are sunk costs

Question

Quizplus · Accepted Answer

Materials needed for production are not considered sunk costs because they are not irreversible or already paid for. They are simply costs that may be incurred in the future if production continues. The purchase cost of machinery and depreciation are examples of sunk costs because they are irreversible costs that have already been paid for.

Which Item Is NOT an Example of a Sunk Cost