A cost that will NOT be affected by later decisions is termed a
A)historical cost.
B)differential cost.
C)sunk cost.
D)replacement cost.

Question

Quizplus · Accepted Answer

Sunk costs are costs that have already been incurred and cannot be changed by future decisions. Therefore, they are not affected by later decisions. Historical cost refers to the actual cost of acquiring an asset or producing a product and may change over time due to changes in market conditions or inflation. Differential cost refers to the difference in cost between two or more alternatives and may change depending on the options chosen. Replacement cost refers to the cost of replacing an asset with a new one and may change over time due to changes in market conditions or technological advancements.

A Cost That Will NOT Be Affected by Later Decisions