Sunk costs
A) are expenditures made in the past that cannot be regained no matter what is done now or in the future.
B) are a component of variable costs, but not fixed costs.
C) represent foregone opportunities, and therefore the firm's managers should consider these costs when they are making current decisions.
D) can be avoided if the firm goes out of business.

Question

Quizplus · Accepted Answer

Sunk costs are past expenditures that cannot be recovered or changed, regardless of future actions. They should not influence current decision-making.

Sunk Costs