Costs that a firm has to endure even when its investment turns out to be unsatisfactory are referred to as _____.

Question

Quizplus · Accepted Answer

Sunk costs are costs that have already been incurred and cannot be recovered, regardless of whether the investment turns out to be successful or not. Switching costs refer to the cost of transitioning from one option to another, replacement costs refer to the cost of replacing a depreciated or obsolete asset, and cost overruns refer to the additional costs incurred beyond the initially budgeted amount.

Costs That a Firm Has to Endure Even When Its