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What is the Definition of Committed Costs, Sunk Costs and Discretionary costs?

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Question added by Suhaib Abbadi , Assurance and Audit Trainee , EY
Date Posted: 2015/03/27
IMRAN ALI MOHAMMED
by IMRAN ALI MOHAMMED , Accounts Officer , M/s. Euro Glazing Ltd

Committed Cost :-  It is an investment that a business entity has already made and cannot recover by any means, as well as obligations already made that the business cannot get out of.

Sunk Cost :- It is a cost that has already been incurred and cannot be recovered.

 

Discretionary Cost :-  It is a cost which is not essential for the operation of a home or a business

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