A-LevelAccountingTraditional costing methods9706/12 · May/June 2015 · Q271 Mark

A business plans to replace its computer systems. Its existing hardware was bought seven years ago and its software five years ago. What type of cost is the existing system?

Afixed

Bstepped

Csunk

Dvariable

✓ Correct answer

C: sunk

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Topic: Traditional costing methods, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, May/June 2015 Paper 1 Variant 2, question 27.

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