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Depreciation of equipment is an example of a(n) relevant cost. opportunity cost. sunk cost. variable cost. None of these.

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Martebi

There are different kinds of cost incurred in business. Depreciation of equipment is an example of sunk cost.

  • Sunk cost is a financial term for a cost that has been incurred and one cannot recover again. This type of costs are taken as bygone and are not taken into consideration when making decisions.

They are money that has been spent and one cannot get back again. Example is Depreciation, amortization, and impairments.

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