Question 10 (2.5 points) After constructing a new factory, the cost of building the factory is...

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Answer 1

Answer #1

In simple terms ,sunk cost is the cost that is already happened and cannot be recovered.

for example in initial investment for any company setup like building, machinery .

so they will come under the sunk cost because they have already been generated for the future production.

variable cost is the cost that increases with the output .

past cost is a general term which means all the cost that cannot be recovered but in sunk cost it is basically fixed cost .

So the answer is option A

Answer 2

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