Sunk costs are:
A) costs of replacing an item today.
B) costs incurred and no longer recoverable.
C) costs of an item discounted at an appropriate rate.
D) equivalent to the historical cost of an item.

Question

Quizplus · Accepted Answer

Sunk costs are costs that have already been incurred and cannot be recovered, regardless of future actions or decisions. They are considered irrelevant to decision-making because they cannot be changed or reversed.

Sunk Costs Are