Which of the following would be considered a sunk cost to a pharmaceutical company?
A)clinical trials
B)the lighting costs of the pill making factory
C)pill making machines
D)the ingredients to make pills

Question

Quizplus · Accepted Answer

Clinical trials are typically considered sunk costs in the pharmaceutical industry because once they have been completed, the company cannot recover the money spent on them regardless of whether the drug is successful or not. The other options listed (B, C, and D) may be considered fixed costs or variable costs, but are not necessarily sunk costs.

Which of the Following Would Be Considered a Sunk Cost