Sunk costs are ________.
A) costs incurred as a result of an investment position
B) costs that is the sum of all costs in a particular business function of the value chain
C) the contributions to operating income that is forgone by not using a limited resource in its next-best alternative use
D) costs that are unavoidable and cannot be changed no matter what action is taken

Question

Quizplus · Accepted Answer

Sunk costs are costs that have already been incurred and cannot be recovered, regardless of any future action taken. They are therefore unavoidable and cannot be changed. Choices A, B, and C describe different types of costs, but none of them pertain specifically to sunk costs.

Sunk Costs Are ________