Answer (D) is correct . A sunk cost cannot be avoided because it represents an expenditure that has already been made or an irrevocable decision to incur the cost.
Answer (A) is incorrect because A discretionary cost is characterized by uncertainty about the input-output relationship; advertising and research are examples.
Answer (B) is incorrect because Full absorption costing includes in production costs materials, labor, and both fixed and variable overhead.
Answer (C) is incorrect because Underallocated indirect cost is a cost that has not yet been charged to production.
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