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what is sunk cost
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Answer / uday
Sunk cost is Past cost and it will not reversed because it
is immaterial cost and there is no use to make the decision
making. for eg: If u Have one bike but your employer
offering fuel allowance per km Rs.2/- for Bike and Rs.3/-
for car. but already you have one bike so you can get only
Rs.2/- for Bike so that car cost is Rs 3/- is sunk cost
because you can know the cost only but it cannot be reversed.
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Answer / brilliant ntanhete
this cost which are incurred by firms or any organisation
and they cost for the past is thi costs irrecovable and must
not be involved on cost when making decisions on where to
invest or not invest on project.in other words sunk are not
vital when making investment decisions
| Is This Answer Correct ? | 1 Yes | 1 No |
Answer / abhishek gupta
sunk cost is the cost which has incurred in the past or in history and it could not be reversible in the present and future.
its also not useful to take decision in business.
example- like i purchased a bike of Rs. 80000 but after some time if we sell it could not be resale of rs. 80000.
so in breir we can say the it is the diffrence between purchase and sell price.
ABHISHEK GUPTA
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Answer / venky
sunk cost is a post cost ,which has been incurred in the
firm,this cost is not relating to decision making to the
management.ex;if we purchase one mechinary that mechin want
to replyas relating to that oild mechin depreciation not
take into decision making .
| Is This Answer Correct ? | 5 Yes | 6 No |
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