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Which cost amounts can be found in a firm's accounting records?
sunk cost
Is fixed cost the same as sunk cost?
Sunk cost is that cost which is incurred in past so in decision making process any cost which is incurred in past has no effect on future events and due to which all fixed cost which are also incurred in past has no effect in future that's why it is not relevent for decision making process, so for decsion making point of view yes fixed cost is sunk cost.
What is the definition of sunk cost?
A cost that has already been incurred and thus cannot be recovered. because it has already happened. Sunk costs are independent of any event that may occur in the future.
Costs that were incurred in the past which are never incremental costs are called?
sunk cost
What is the distinction or differences between an incremental cost and sunk cost?
incremental cost are defined as the change in overall cost that result from particular decision making. it include both fixed cost and veriable cost. sunk cost are those cost which are made once and for all can't be altered incremental or decreased by varying the rate of output, nor can they be recovered. for example - once it is decided to make incremental investment expenditure and the fund are allocated and spend
How would you define unavoidable costs?
Unavoidable cost ; inescapable cost ; sunk cost. Unavoidable costs will occur whether the decision is made to go ahead or not, because the firm has already spent, or committed to spend, the cash.
Is depreciation cost relevant in Outsourcing?
Only the total amount of a new machine is a relevant cost because this incurs in the future and incurs when a certain decision is made. The depreciation of old machines is a sunk cost so this is an unavoidable cost. The amount for the old machine you sell is a relevant cost because you will get this amount if you sell the old machine and buy the new one.
What is the meaning of avoidable cost and unavoidable cost?
I think that avoidable cost is the cost that can be avoided if certan decision is taken or not taken. It is more or less cost which is varied according to the decision taken by management. That is all variable cost can be said to be avoidable On the other hand unavoidable cost is that cost which cannot be avoidable at least for the short term. This means that unavoidable cost can be said to be more or less a fixed cost in the short term which cannot be changed.
Which cost amounts can be found in a firm's accounting records?
sunk cost
Is fixed cost the same as sunk cost?
Sunk cost is that cost which is incurred in past so in decision making process any cost which is incurred in past has no effect on future events and due to which all fixed cost which are also incurred in past has no effect in future that's why it is not relevent for decision making process, so for decsion making point of view yes fixed cost is sunk cost.
Is depreciation considered a sunk cost in financial analysis?
Yes, depreciation is considered a sunk cost in financial analysis. Sunk costs are costs that have already been incurred and cannot be recovered, so they are not relevant for future decision-making. Depreciation is a non-cash expense that reflects the decrease in value of an asset over time, and it is treated as a sunk cost in financial analysis.
What is the difference between avoidable cost and unavoidable cost?
When considering outsourcing a portion of services provided, avoidable costs are those that would go away if the service was outsourced. Unavoidable costs are those that would remain such as overhead.
What is the definition of sunk cost?
A cost that has already been incurred and thus cannot be recovered. because it has already happened. Sunk costs are independent of any event that may occur in the future.
Is it true or false that a cost that will not be affected by later decisions is termed an opportunity cost?
A cost that will not be affected by later decisions is termed a sunk cost.
Explain the relation between sunk costs and specificity?
Specificity refers to the percentage of an investment that will be lost if the asset is switched to another use. Sunk cost is a cost that cannot be avoided once incurred. The relation between them is
Costs that were incurred in the past which are never incremental costs are called?
sunk cost
Who monitors sunk cost?
Even in a strong form efficient capital market, external monitors may not have an adequate incentive to discipline managers who have succumbed to moral hazard and caused the corporation to bear an inefficient sunk cost
