Which of the following is true of locked-in costs?
A) Locked-in costs are the same as sunk costs.
B) Locked-in costs are always fixed costs.
C) Locked-in costs are incurred costs.
D) Locked-in costs are also called designed-in costs.

Question

Quizplus · Accepted Answer

Locked-in costs, also known as designed-in costs, refer to costs that are committed based on decisions made during the design phase of a product, even though they have not yet been incurred.

Which of the Following Is True of Locked-In Costs