Identify the example of sunk cost from the following.
A)A higher wage demanded by the labor union
B)Failure to meet the annual sales target
C)The lumber used to produce office furniture
D)Raw materials damaged by fire in the warehouse

Question

Quizplus · Accepted Answer

Sunk costs are costs that have already been incurred and cannot be recovered. The raw materials damaged by fire represent a cost that has already been incurred and cannot be recovered, making it a sunk cost.

Identify the Example of Sunk Cost from the Following