When considering whether or not to drop a market segment of a business, past costs that CANNOT be recovered regardless of whether the segment is dropped are:

Question

Quizplus · Accepted Answer

Sunk costs are costs that have already been incurred and cannot be recovered, regardless of the decision made. Therefore, if a business chooses to drop a market segment, sunk costs will not change and will still be unrecoverable.

When Considering Whether or Not to Drop a Market Segment