A Department Accepts a New Order from a Customer

question 66

Multiple Choice

A department accepts a new order from a customer. It has already incurred £100 for design costs. It has also incurred costs of £200 for visits by sales staff. If the order is accepted a quality inspector will be transferred from another department. The inspector earns £20,000 per year. If the order is accepted there will be additional training costs of £700.
-In this decision the sunk costs are:

• A)£20,000.
• B)£100.
• C)£200.
• D)£300.

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