Which is NOT a sunk cost?
A) Monthly rent of $1,000 contractually specified in a one-year lease.
B) An insurance premium of $50 per year,paid last month.
C) An attorney's retainer of $50,000 per year.
D) A worker's wage of $15 per hour.
E) A non-refundable deposit for a tender.

Question

Quizplus · Accepted Answer

A sunk cost is a cost that has already been incurred and cannot be recovered. Option D, a worker's wage of $15 per hour, is not a sunk cost as it is an ongoing expense that can be avoided by ending the employment. The other options are all sunk costs as they have already been incurred and cannot be recovered.

Which Is NOT a Sunk Cost