Depreciation of equipment is an example of a(n)
A) relevant cost.
B) opportunity cost.
C) sunk cost.
D) variable cost.
E) None of these.

Name: Depreciation of equipment is an example of a(n) A) relevant cost. B) opportunity cost. C) sunk cost. D) variable cost. E) None of these.
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Question

Quizplus · Accepted Answer

Depreciation of equipment is a sunk cost. Sunk cost represents costs that are already incurred and cannot be recovered, therefore, they should not be factored into decision making.

Depreciation of Equipment Is an Example of A(n)