Respuesta :
Answer:
D) $500.
Explanation:
Sunk cost: The sunk cost is that cost which is not recovered in the future. If it is incurred in the past, then it is impossible to recover it in the future
Since, in the question, the machine was bought two years ago for $500 which represents the sunk cost as it depicts the cost which is incurred in the past whereas the other cost reflects the future cost.
Sunk costs once incurred cannot be recovered. Thus, in this case, the sunk costs would be $ 500 as it is a past cost that has already been incurred by Noel and is unrecoverable.
What are Sunk Costs?
Sunk costs are those that have been incurred and are unrecoverable.
Types of Sunk Costs:
All sunk costs are fixed costs but not all fixed costs are sunk costs.
The difference is that the sunk costs cannot be recovered. If the equipment can be resold or returned at a purchase price, for example, it is not a sunk cost.
In business, sunk costs are often excluded from future considerations, as they appear to be unrelated to current and future budget concerns.
The suck cost differs from the actual costs, which are future costs yet to be incurred.
Hence, Option D. $500 is the correct answer.
To learn more about sunk cost, refer to the link:
https://brainly.com/question/24976252
