Which of the following is a sunk cost for any cost object related to Janice's Kennel and Pet Spa?
A) Cost of the automobile Janice is planning to buy for pet transportation
B) Cost of existing computer equipment used to keep company records
C) Cost of annual wages for full-time employees
D) Cost of rent for the next period

Question

Quizplus · Accepted Answer

A sunk cost is a cost that has already been incurred and cannot be recovered. The cost of existing computer equipment is a sunk cost because it has already been purchased and cannot be changed by any future decisions.

Which of the Following Is a Sunk Cost for Any