The costs that are unavoidable and remain unchanged no matter what done are classified as
Correct answer: A. sunk costs
- A. sunk costs
- B. bunked costs
- C. unrecorded costs
- D. recorded costsHire An Accountant
Explanation
A sunk cost cannot be recovered or changed by a current decision, so it remains the same regardless of the selected alternative. The word “bunked” is not a recognized cost-accounting classification.
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About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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