AB Mining Company just commissioned a firm to identify if an unused portion of their mine contains any silver or gold at a cost of $125,000. This is an example of a(n) _______________.

Name: AB Mining Company just commissioned a firm to identify if an unused portion of their mine contains any silver or gold at a cost of $125,000. This is an example of a(n) _______________.
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Question

Quizplus · Accepted Answer

The $125,000 spent on the study is a sunk cost because it is a cost that has already been incurred and cannot be recovered.

AB Mining Company Just Commissioned a Firm to Identify If