Sunk costs are costs that
A)are potential costs associated with a particular decision.
B)are part of the opportunity costs of a decision.
C)are incurred in the past and cannot be reversed.
D)should be considered in any decision.

Question

Quizplus · Accepted Answer

Sunk costs are costs that have already been incurred and cannot be reversed or recovered. They are therefore irrelevant to current or future decisions. It is important to consider only relevant costs and benefits when making decisions, and sunk costs do not meet this criteria.

Sunk Costs Are Costs That