Which of the Following Is Classified as a Sunk Cost

question 32

Multiple Choice

Which of the following is classified as a sunk cost?

• A)Cost of the next best alternative
• B)Additional cost of producing an additional unit
• C)Research costs to determine the implementation of a technology
• D)Total cost of producing a product

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Definitions:

Equivalent Units

A concept in costing used to convert partially completed goods into the equivalent of a number of fully completed units.

Process Cost Accounting

Process cost accounting is a method used to allocate production costs to units of output in continuous or repetitive manufacturing processes.

Materials Account

The materials account is used in accounting to track the cost of raw materials that are either in stock or used during the manufacturing process.

Lean Manufacturing

A systematic method for waste minimization within a manufacturing system without sacrificing productivity, aiming to produce more value for customers with fewer resources.