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The cost which is to be incurred even when a business unit is closed is a _____.
- Aimputed cost
- Bhistorical cost
- Csunk cost
- Dshutdown cost
Correct answer: D
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shutdown cost
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.
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.