Question

Question No.: 2/40
Research and development cost is an example of
Sunk cost
Pre-production cost
Imputed cost
Opportunity cost​

Answer 1

Answer:

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Explanation:

A sunk cost refers to money that has already been spent and which cannot be recovered. In business, the axiom that one has to "spend money to make money" is reflected in the phenomenon of the sunk cost. A sunk cost differs from future costs that a business may face, such as decisions about inventory purchase costs or product pricing. Sunk costs are excluded from future business decisions because the cost will remain the same regardless of the outcome of a decision.

KEY TAKEAWAYS

Sunk costs are those which have already been incurred and which are unrecoverable.

In business, sunk costs are typically not included in consideration when making future decisions, as they are seen as irrelevant to current and future budgetary concerns.

Sunk costs are in contrast to relevant costs, which are future costs that have yet to be incurred.

Answer 2

Answer:

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Explanation:

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