Which of the following is an example of a sunk cost?

Name: Which of the following is an example of a sunk cost?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A sunk cost is a cost that has already been incurred and cannot be recovered. In this case, the purchase cost of machinery for production is a sunk cost since the money has already been spent and cannot be recovered. The other options are not necessarily sunk costs, as materials, labor, and supplies can all be adjusted or reduced in the future.

Which of the Following Is an Example of a Sunk