what is sunk cost a cost has been incurred in the


What is Sunk cost

A cost has been incurred in the past or sunk in the past and is not relevant to the particular decision making, is a sunk cost.

If it is decided to replace the existing plant, the written down book value of the plant is less than the value of the existing plant, is a sunk or irrevocable cost.

 

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Managerial Accounting: what is sunk cost a cost has been incurred in the
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