Asked by
HaMxA AsHfaQ
on Oct 10, 2024
Verified
Fixed costs are sunk costs.
Fixed Costs
Expenses that do not change with the level of production or sales over a short period, such as rent, insurance, and salaries.
Sunk Costs
Costs that have already been incurred and cannot be recovered.
- Separate the concepts of costs that are escapable from those that are irrecoverable.
- Determine the significance of variable and fixed costs in different decision-making processes.
Verified Answer
MA
Learning Objectives
- Separate the concepts of costs that are escapable from those that are irrecoverable.
- Determine the significance of variable and fixed costs in different decision-making processes.