Money that has been or will be paid regardless of the decision whether or not to proceed with the project is:
A)cannibalization.
B)considered as part of the initial investment in the project.
C)an opportunity cost.
D)a sunk cost.

Question

Quizplus · Accepted Answer

Money that has already been spent or committed to spending, regardless of the decision to proceed with the project, is considered a sunk cost. Sunk costs cannot be recovered and are not relevant to current decision-making. They should not be considered when making decisions about whether to proceed with a project.

Money That Has Been or Will Be Paid Regardless of the Decision