what is sunk cost

Answer Posted / 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.

Is This Answer Correct ?    1 Yes 0 No



Post New Answer       View All Answers


Please Help Members By Posting Answers For Below Questions

is it possible that on dealer of work contract can opt composition and non-composition both scheme in dvat?

1579


I KNOW THAT INSURANCE CHARGES ON PURCHASE OF VEHILE (LIGHT/HEAVY VEHICLES)HAS BEEN CAPITALISED OR NOT.?

1450


I have an S Corporation called Trend Foods Inc. I would like to make a division of that company that services computers and call that Trend Computer Service. I do not want to set up another Corporation for Trend Computer Service. Can I just make a division of Trend Foods and what paperwork do I need to fill out to make that happen? Thanks for the help, Jim

1625


What is Direct Debit

1696


How to enter PO in SAP

1454






Short Answer on ______Transaction

1533


we are in contraction business, we purchase raw material and paid tax on related material, suppose we want to bill to our party in WCT?

1618


what amounts to appropriation of profits? When provision for taxation does not amount to appropriation of profits?

1783


euro currency market

1469


WhatIs the limit of duty exemption in smal scale industries.

1714


What is a Balance Sheet & Profit & Loss Account?

1486


Explain Cash Basis of accounting

1568


what is meant by transposition error

1580


what is budgetory control and what are the types

1928


What is Acquisition?

2034