Resources expended for actions actually undertaken are:

Resources expended for actions actually undertaken are:

• A. Historical costs
• B. Sunk costs
• C. Variable costs
• D. Controllable costs

Answer: (B)

Resources expended for actions already undertaken are sunk costs. A sunk cost is money that has already been spent and cannot be recovered, so it should not influence future decisions. In planning and control, decisions should focus on future costs and benefits, not on past expenditures. Historical costs are past costs but not necessarily unrecoverable, and variable or controllable costs refer to future behavior and managerial influence, not to irrecoverable past spending.

Resources expended for actions already undertaken are sunk costs. A sunk cost is money that has already been spent and cannot be recovered, so it should not influence future decisions. In planning and control, decisions should focus on future costs and benefits, not on past expenditures. Historical costs are past costs but not necessarily unrecoverable, and variable or controllable costs refer to future behavior and managerial influence, not to irrecoverable past spending.