Multiple Choice Questions on The cost which is to be incurred even when a business unit is closed is a ........ for SEBI Grade A ( Officer) Exam Preparation

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Multiple Choice Questions

The cost which is to be incurred even when a business unit is closed is a ........

Costing - Phase (I & II) Basics of Cost Control and Analysis
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    The cost which is to be incurred even when a business unit is closed is a _____.

    imputed cost

    Incorrect Answer

    historical cost

    Incorrect Answer

    sunk cost

    Incorrect Answer

    shutdown cost

    Correct Answer
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    Explanation:

    The cost which is to be incurred even when a business unit is closed is a shutdown cost. The shut down price is the minimum price a business needs to justify remaining in the market in the short run

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