(Consider This)Which of the following is an example of a sunk cost,as it relates to a firm?

Question

Quizplus · Accepted Answer

A sunk cost is an expenditure that has already been incurred and cannot be recovered. In this scenario, the nonrefundable, nontransferable airline ticket is an example of a sunk cost because the money spent on it cannot be recovered even if the person decides not to use it. The other options could potentially be recovered or have resale value, making them not sunk costs.

(Consider This)Which of the Following Is an Example of a Sunk