Examveda
Examveda

The cost which is to be incurred even when a business unit is closed is a _____.

A. imputed cost

B. historical cost

C. sunk cost

D. shutdown cost

Answer: Option D

Solution(By Examveda Team)

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.

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