Sunk Costs Are Past Costs That Are Unavoidable

question 148

True/False

Sunk costs are past costs that are unavoidable.

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Definitions:

Standard Variable Overhead Rate

The predetermined rate used to allocate variable manufacturing overhead to individual units of production.

Standard Hours

The predetermined amount of time expected to complete a unit of work or job, serving as a benchmark for productivity and performance measurement.

Actual Output

The real quantity of goods or services produced by a company during a specific period.