A client in another province needs immediate help in solving a personnel training problem in the shipping department. Match each activity on the basis of its relationship with this consulting engagement. Items may have multiple classifications.
-Current year's amortization of the firm's computer system is $15,000
A) Irrelevant Costs
B) Opportunity Cost
C) Opportunity, Irrelevant Costs
D) Sunk Costs
E) Relevant Costs
F) Sunk, Irrelevant Costs

Question

Quizplus · Accepted Answer

Sunk costs are costs that have already been incurred and cannot be recovered. The current year's amortization of the firm's computer system is a sunk cost because it has already been incurred and cannot be recovered.

A Client in Another Province Needs Immediate Help in Solving