Advertising used to build brand recognition is a sunk cost.

Name: Advertising used to build brand recognition is a sunk cost.
Brand: Quizplus
Rating: 4.8 (50 reviews)

Question

Quizplus · Accepted Answer

A sunk cost is a cost that has already been incurred and cannot be recovered. Brand recognition is an intangible asset that can increase the perceived value of a product or service. However, the cost of advertising used to build brand recognition cannot be recovered once it has been spent, making it a sunk cost.

Advertising Used to Build Brand Recognition Is a Sunk Cost