What are costs that have already been incurred, and which cannot be recovered?
A)Short-run fixed costs.
B)Implicit costs.
C)Unavoidable costs.
D)Sunk costs.

Question

Quizplus · Accepted Answer

Sunk costs are those costs that have already been incurred and cannot be recovered. This is because they have already been spent on something that cannot be undone or reversed. Therefore, sunk costs are not relevant in making a decision for the future, as they do not affect the future costs or benefits. Choices A, B, and C do not refer specifically to costs that have already been incurred and cannot be recovered.

What Are Costs That Have Already Been Incurred, and Which