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Explain the following: Sunk cost - Commercial Applications

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Questions

What is meant by sunk cost?

Explain the following:

Sunk cost

Short Note

Solution

Sunk costs are historical or past costs which cannot be changed by any future decision. Investments in plant and machinery, buildings, etc., are examples of sunk costs. These costs are irrelevant for decision-making because they cannot be altered by later decisions.

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Classification of Costs
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Chapter 8: Fundamental Concepts of Cost - EXERCISES [Page 134]

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Goyal Brothers Prakashan Commercial Studies [English] Class 10 ICSE
Chapter 8 Fundamental Concepts of Cost
EXERCISES | Q 4. | Page 134
Goyal Brothers Prakashan Commercial Applications [English] Class 10 ICSE
Chapter 8 Fundamental Concepts of Cost
QUESTION BANK | Q 9. (iv) | Page 140
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