1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
SVEN [57.7K]
3 years ago
11

Past costs that are not affected by new decisions are known as

Business
2 answers:
Evgen [1.6K]3 years ago
5 0

The answer is sunk cost .

<h2>Further explanation </h2>

Sunk costs are costs that are incurred and are not refundable. Before the issue, sunk costs are included in the opportunity costs section and are not relevant for future decision making. This term originates from the oil industry where the decision to stop or continue operating an oil well is made based on expected cash flow and not based on a lot of money spent on drilling it. This is usually referred to as embedded costs, previous year's costs, stranded costs, or sunk costs.

According to the dictionary, the sunk costs are costs incurred in the past that will not be affected by current decision making. In the accounting world, sunk costs are defined as costs that have been incurred and generally cannot be changed.

Sunk costs are related to fixed costs so to calculate sunk costs you can use the fixed cost formula, which is as follows:

<u>Fixed costs = sunk costs + fixed costs that can be avoided </u>

If seen from the formulation of fixed costs consisting of sunk costs and fixed costs that can be avoided. Fixed costs that can be avoided are fixed costs components that can be avoided, but sunk costs are components of fixed costs that cannot be avoided.

Learn more

Sunk cost brainly.com/question/7034592, brainly.com/question/13777436

Details

Class: High School

Subject: Business

Keywords: Past costs are not affected by new decisions.

salantis [7]3 years ago
4 0
<span>Past costs that are not affected by new decisions are known as sunk costs. Sunk costs do not need to be taken into account when making new decisions because the money associated with it was already lost and it can not be regained. This money is lost by businesses due to bad decisions, such as poor investments.</span>
You might be interested in
g For this question, ignore inflation. Suppose Jenny earns $60,000 per year working as a tax analyst. After ten years, she quits
arsen [322]

Answer:

If Jenny doesn’t earn any interest on her savings and wants to perfectly smooth consumption across her life, how much will she consume every year?

Jenny's total income during her life = income as tax analyst ($60,000 x 10) + income as PhD student ($12,000 x 5) + income as Art Director (35 x $95,000) = $3,985,000

she generated income during 50 years and expects to live 20 more, so in order to perfectly smooth consumption across her life, she must divide her total life income by 70 years = $3,985,000 / 70 years = $56,928.57 per year

What might prevent her from perfectly smoothing consumption?

First of all, besides inflation, you also earn interest on your savings. That is why 401k and other retirement accounts work so well (the magic of compound interest). Even if inflation and interests didn't exist, you cannot know exactly what you are going to earn in the future and for how many years. In this case, she earned $60,000 for 10 years, but then earned only $12,000 during 5 years. If she really wanted to smooth her consumption, she would have needed to get a loan because her savings during the first 10 years wouldn't be enough.

4 0
2 years ago
What would be a barrier to a child’s mental development?
kirill [66]

Not having experiences that help them make good choices though out the rest of their lives. Also someone to guide them through times good and bad to help them make the right choices.

5 0
3 years ago
Barney hendricks is interviewing web developers for his company. over lunch, he tells you that his top candidate showed lots of
anastassius [24]
Barney appears to be very impressed by the candidate's non-verbal communication skills.
8 0
3 years ago
Read 2 more answers
The variable in an experiment that is observed or measured in response to the experimental condition is known as the _________ v
Ierofanga [76]
Design make liability
5 0
3 years ago
Money demand is given by md/p = 1000 .2y - 1000i. given that p = 200, y = 2000, and i = .10, real money demand is equal to?
Marrrta [24]

The real money demand is equal to $2,60,000

Money demand/ P = 1000+0.2Y -1000i

Money demand/200= 1000+0.2(2000)-1000(0.1)= 1000+400-100

=1300

Money demand  /200 = 1300

Money demand  = $1300*200

= $2,60,000

Money demand is the demand for real cash balances as people hold onto money to purchase goods and services. The higher the price level, the more money you need to buy a certain amount of goods.

Learn more about Money demand here:brainly.com/question/24109874

#SPJ4

4 0
2 years ago
Other questions:
  • You earn money from working part-time at the local grocery store. you also receive a weekly allowance from your parents. both yo
    11·1 answer
  • Ireland Corporation obtained a $40,000 note receivable from a customer on June 30, 2011. The note, along with interest at 6%, is
    15·1 answer
  • When property rights are well defined and markets are: competitive market equilibrium violates the conditions for economic effic
    12·1 answer
  • Certain contracts, such as those involving the sale of personal property for $500 or more:_______.
    6·1 answer
  • Grey's infotech sells customized hardware and software solutions for businesses. the salespeople for grey's have a strict dress
    13·1 answer
  • PB9.
    12·1 answer
  • Taylor Enterprises purchased 56,000 pounds (cost = $420,000) of direct material to be used in the manufacture of the company's s
    5·2 answers
  • Three graduate business students are considering operating a fruit smoothie stand in the Harbor Springs, Michigan, resort area d
    8·1 answer
  • For Sunland Co., beginning capital balances on January 1, 2020, are Nancy Payne $18,900 and Ann Dody $24,000. During the year, d
    7·1 answer
  • Accounts receivable are shown as<br>in the AR customer file.​
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!