After purchasing a coffee cup from your local gas station for $5.00,you can always refill your cup for $0.50.The sunk cost of the coffee purchased at the gas station is:

Question

Quizplus · Accepted Answer

The sunk cost refers to the costs that have already been incurred and cannot be recovered. In this case, the sunk cost is the initial purchase price of the coffee cup, which is $5.00. The cost of refilling the cup, which is $0.50, is not a sunk cost because it is a variable cost that can be avoided by not refilling the cup. Therefore, the best choice is B.

After Purchasing a Coffee Cup from Your Local Gas Station