Question

sunk costs vs opportunity costs

sunk costs vs opportunity costs

Homework Answers

Answer #1

Sunks cost are the amount that already spent and permanently lost.Sunks costs cannot be recovered or refunded,For example once  rent is paid,it no longer recoverable.Whereas opportunity cost represents the benefit foregone when choosing one alternative over other.

In capital budgeting analysis,sunk costs are costs which are already incurred and which need not be reflected in the incremental cash flows use to calculate net present value and internal rate of return.On the other hand, Opportunity cost which do not necessarily involve any cash outflows but which need to be considered because they reflect the foregone profit that could have been elsewhere.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Discuss the differences between opportunity costs and sunk costs. What are these costs used for by...
Discuss the differences between opportunity costs and sunk costs. What are these costs used for by managers in decision-making?
Then, select one of the following types of costs: sunk costs, opportunity costs, or accounting costs,...
Then, select one of the following types of costs: sunk costs, opportunity costs, or accounting costs, and think about a scenario where this type of cost was important for informing decision making. Think about another scenario where this type of cost was important for furthering stakeholder agendas. By Day 3 Post the following: Provide an explanation of a scenario of how the type of cost you have selected (sunk, opportunity, or accounting) may be used to further stakeholder agendas.
Which of the following costs are always irrelevant in decision making? A. sunk costs B. opportunity...
Which of the following costs are always irrelevant in decision making? A. sunk costs B. opportunity costs C. fixed costs D. avoidable costs
Sunk or opportunity cost Explain the difference between a sunk cost and an opportunity cost and...
Sunk or opportunity cost Explain the difference between a sunk cost and an opportunity cost and give an example of each.
Incremental cost analysis calls for considering the following costs: Relevant cost. Opportunity cost. Sunk cost. Define...
Incremental cost analysis calls for considering the following costs: Relevant cost. Opportunity cost. Sunk cost. Define these costs and indicate how they are used for incremental cost analysis.
Describe sunk costs. Why are sunk costs irrelevant in decision making? Give an example of a...
Describe sunk costs. Why are sunk costs irrelevant in decision making? Give an example of a fixed cost that is not sunk, but is still irrelevant.
Which of the following is not relevant in a special order decision? Variable costs. Opportunity costs....
Which of the following is not relevant in a special order decision? Variable costs. Opportunity costs. Sunk costs. Avoidable fixed costs. None of the answer choices is correct.
What is the nature of an opportunity cost?    1.It is a sunk cost.       ...
What is the nature of an opportunity cost?    1.It is a sunk cost.        2.It is always variable.    3.It is included as part of cost of goods sold.    4.It is a potential benefit.
Explain the difference between a sunk cost and an opportunity cost and give an example of...
Explain the difference between a sunk cost and an opportunity cost and give an example of each.
Sunk costs are past costs. True False
Sunk costs are past costs. True False
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT
Active Questions
  • Distinguish between the typical roles of geologist and engineers in dealing with groundwater problems. How do...
    asked 13 minutes ago
  • 5) A rock is thrown directly southeast (45 degrees to S and E), at an initial...
    asked 16 minutes ago
  • If 133.2 kJ of heat are added to 5.80 × 102 g of water at 22.0°C,...
    asked 17 minutes ago
  • true/false An unweighted path length measures the number of edges in a graph. Breadth first search...
    asked 25 minutes ago
  • Give an example of the effect of interest rate changes on a fixed coupon bond, what...
    asked 33 minutes ago
  • Thirty-two small communities in Connecticut (population near 10,000 each) gave an average of x = 138.5...
    asked 37 minutes ago
  • The value of the integral   ∫C(3x2+ycosx)dx+(sinx−4y3)dy∫C(3x2+ycos⁡x)dx+(sin⁡x−4y3)dy, where CC is an arbitrary path from A(−π,−1)A(−π,−1) to B(2π,1)B(2π,1),...
    asked 51 minutes ago
  • the ordinates of a 6-h unit hydrograph for a particular catchment are 0,10,30,50,40,30,20,10 and 0 m3/s...
    asked 52 minutes ago
  • Please solve this using R code Part 3: A particular item is handmade in two stages...
    asked 1 hour ago
  • Compare the American Cousnelors Association (ACA) code of ethics regarding conflict of interest to the National...
    asked 1 hour ago
  • A fisherman's scale stretches 3.2 cm when a 2.1 kg fish hangs from it. a) What...
    asked 1 hour ago
  • Compare the American Counselors Association (ACA) code of ethics regarding referral due to dual relationship possibility...
    asked 2 hours ago