Sunk Costs Can Be Defined As

question 14

Multiple Choice

Sunk costs can be defined as:

• A)incremental costs.
• B)opportunity costs.
• C)cost that has already been incurred but is relevant to future decision making.
• D)cost that has already been incurred and is irrelevant to future decision making.

---

Definitions:

Factory Overhead Cost

Indirect costs associated with manufacturing, such as maintenance, utilities, and salaries of supervisors, not directly tied to specific product units.

Construction Contractor

A business or individual that agrees to construct a building or to manage a construction project in accordance with specified parameters.

Performance Report

A document that evaluates the performance of a project, department, or employee against set goals or benchmarks.

Employee Downtime

Periods when employees are not actively working due to breaks, equipment failure, or lack of demand.