A production cost that has already been committed and cannot be recovered is termed a:

Question

Quizplus · Accepted Answer

A sunk cost is a cost that has already been incurred and cannot be recovered. Fixed costs and variable costs can both be recovered or avoided in future decisions, but sunk costs are already gone and cannot be undone. Total cost refers to the sum of all costs, but does not specifically describe a cost that has been committed and cannot be recovered.

A Production Cost That Has Already Been Committed and Cannot