Daisy owns a deli and has paid her rent in advance for five years. This nonrefundable rent is considered a _____ cost.

Name: Daisy owns a deli and has paid her rent in advance for five years. This nonrefundable rent is considered a _____ cost.
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Question

Quizplus · Accepted Answer

The rent paid in advance for five years, which is nonrefundable, is considered a sunk cost because it is a cost that has already been incurred and cannot be recovered, regardless of future events.

Daisy Owns a Deli and Has Paid Her Rent in Advance