Which is correct regarding development costs

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Reference no: EM132954700

A company has incurred development costs of RM25,000 to date on a proposed new product. Further costs of RM18,000 would be required to complete the development of the product.

Problem 1: In deciding whether to continue with the new product development which of the following is correct regarding development costs?

Sunk cost              Incremental cost
A RM 0                 RM 43,000
B RM 18,000           RM 25,000
C RM 25,000           RM 18,000
D RM 43,000             RM 0

Reference no: EM132954700

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