Past Costs Are Also Called Sunk Costs Because They Are

question 12

True/False

Past costs are also called sunk costs because they are unavoidable and cannot be changed no matter what action is taken.

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Definitions:

Inventory

The goods and materials held by a company for the purpose of resale or production.

Sales

The total amount of revenue generated from selling goods or services over a specific period.

February

This month falls second in the Gregorian calendar lineup, featuring 28 days in typical years and 29 in those considered leap years.

Administrative Expense

Costs related to the general operation of a company, such as salaries of executive officers and costs associated with the corporate office.