What are sunk costs?

Name: What are sunk costs?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Sunk costs are costs that have already occurred and cannot be recovered, regardless of any current or future decisions made. They are no longer relevant to decision making because the money has already been spent and cannot be used for any other purpose. Therefore, the correct answer is D, which states that sunk costs are the allocation of costs that have already occurred.

What Are Sunk Costs