Asked by
andrea torres
on Dec 01, 2024
Verified
The lost salvage value of an asset replaced prior to the end of its useful life is a sunk cost.
Salvage Value
The estimated residual value of an asset at the end of its useful life, often considered in depreciation calculations and asset disposal decisions.
Sunk Cost
Expenses that have already been incurred and cannot be recovered, and should not influence future business decisions.
- Differentiate between pertinent and non-pertinent expenses during the assessment of a project, encompassing comprehension of sunk costs and opportunity costs.
Verified Answer
EP
Learning Objectives
- Differentiate between pertinent and non-pertinent expenses during the assessment of a project, encompassing comprehension of sunk costs and opportunity costs.