The book value of an asset such as equipment is an example of:

A) a future cost.
B) a differential cost.
C) an opportunity cost.
D) a sunk cost.

Sunk Cost

A cost that has already been incurred and cannot be recovered.

Differential Cost

The difference in cost between two alternative decisions or scenarios, important in the process of making financial decisions.

Book Value

The net value of a company's assets less its liabilities and preferred stock, often used to estimate the company's worth.