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Cost which not change with change in decision making is:

A- direct cost B- Sunk cost C- relevant cost D- indirect cost

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Question ajoutée par Ahmed kandil , Cost Controller , Battour Holding Cpompany
Date de publication: 2015/04/02
Mir Mujtaba Ali
par Mir Mujtaba Ali , Internal Audit Manager , Confidential

B- Sunk cost

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Muhammad Sher Zaman Gul
par Muhammad Sher Zaman Gul , Finance Manager , Sojhla for Social Change

Sunk costs are costs that have been paid. A variable cost that is paid becomes a form of fixed cost called a sunk cost. Because the cost has already been paid, it is a fixed cost. Avoidable fixed costs become unavoidable fixed costs once the cost has been paid. Likewise, a variable cost becomes a sunk cost once it has been paid as shown in the figure below. For example, purchasing $2,000 worth of erasers to use in making pencils (above) is a sunk cost. So, as you progress through the production period, costs that were initially variable become fixed. Once the pencils are produced and entered into inventory, most of the variable costs have been incurred and become sunk or fixed costs.

Mohammad Iqbal Abubaker
par Mohammad Iqbal Abubaker , Jahaca Pty Ltd - Accounts Administrator , Jahaca Pty Ltd - Accounts Administrator

Cost which not change with change in decision making is:

 

The given below is the correct answer.

 B- Sunk cost

Huda Adam
par Huda Adam , Faculty of Commerce Graduate , Cairo University

Answer B

 

Sunk cost is independent of events that may occur in the future, as once it has already taken place.

Muhammad Ramzan Tufail  ACCA
par Muhammad Ramzan Tufail ACCA , Assistant Finance Manager , Eltizam Asset Management Group

(C) is the Correct Ans.

 

Relevant Cost

Anas  Dawah
par Anas Dawah , Senior Internal Auditor , Talal Abu-Ghazaleh Global (TAGI)

B--------------------- Sunk cost

RENU padinjattukara house
par RENU padinjattukara house , Finance Executive , Paragon Polymer Products (p) Ltd

Sunk cost

Because it has already been incurred and has no role in decision making.

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