"Committed" and "Sunk" costs are:
A) Generally not fixed.
B) Generally small in amount.
C) The result of prior bad decisions.
D) Not relevant for decision-making.
E) Recoverable in trade.

Question

Quizplus · Accepted Answer

Committed and sunk costs refer to costs that have already been incurred and cannot be recovered or changed. These costs are not relevant for decision-making since they cannot be altered by future actions.

"Committed" and "Sunk" Costs Are