Which of the following is not an example of sunk costs?
A)advertising
B)locate the firm is a huge warehouse.
C)spending money in the community
D)undertake costly actions to inform customers about itself

Question

Quizplus · Accepted Answer

Sunk costs are expenses that have already been incurred and cannot be recovered. Locating the firm in a huge warehouse (choice B) is not necessarily a sunk cost unless the payment for the warehouse has already been made and cannot be recovered. Choices A, C, and D involve expenditures that, once made, cannot be recovered, making them examples of sunk costs.

Which of the Following Is Not an Example of Sunk