Question

6. A cost that must be incurred if an investment is not made is a(n)
(A) Sunk cost
(B) Fixed cost
(C) Avoidable cost
(D) Opportunity cost
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Answer 1

Answer:

(D) Opportunity cost.

Explanation:

hope its helpful.

Answer 2

Answer:

(A) Sunk cost

A cost that must be incurred if an investment is not made is Sunk cost.

Explanation:

A sunk cost is a cost that an entity has incurred, and which it can never again recuperate. Sunk costs ought not to be viewed while settling on the choice to keep putting resources into an ongoing venture since these costs can't be recuperated.

All things being equal, just important costs ought to be thought of. Nonetheless, numerous directors keep putting resources into projects on account of the sheer size of the sums previously invested resources into earlier periods. They would rather not "lose the investment" by reducing an undertaking that is demonstrating to not be beneficial, so they keep emptying more money into it.

Sanely, they ought to believe prior investments to be sunk costs, and in this way exclude them from thought while choosing whether to go on with additional investments.