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

Sunk costs are expenses that have already been incurred and cannot be recovered. Materials needed for production are not considered sunk costs because they are variable costs that can be avoided in the future, unlike the purchase cost of machinery and depreciation, which are costs that have already been incurred and cannot be recovered.

Which Item Is Not an Example of a Sunk Cost