Costs That Has Been Incurred in the Past Is Referred

question 26

Multiple Choice

Costs that has been incurred in the past is referred to as

• A)avoidable costs.
• B)sunk costs.
• C)opportunity costs.
• D)relevant costs.

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Definitions:

Employer Pension Costs

Expenses incurred by employers to fund retirement benefit plans for their employees.

Direct Labor Hour

A direct labor hour measures the actual time spent by workers directly involved in the production of goods or services, used for costing and operational efficiency.

Insurance Costs

Expenses associated with purchasing insurance policies to protect against risks.

Straight-line Depreciation

A method of allocating an asset's cost evenly across its useful life.