A-LevelAccountingTraditional costing methods9706/12 · May/June 2012 · Q231 Mark

Which statement best describes a sunk cost?

Acost which is irrelevant for the future

Bcost which must be matched against the revenue

Ccost which remains the same at all levels of production

Dcost which varies with the level of production

✓ Correct answer

A: cost which is irrelevant for the future

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Topic: Traditional costing methods, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, May/June 2012 Paper 1 Variant 2, question 23.

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