If a firm has already paid an expense or is obligated to pay one in the future,regardless of whether a particular project is undertaken,that expense is a(n):

Question

Quizplus · Accepted Answer

A sunk cost is a cost that has already been incurred and cannot be recovered, regardless of whether or not a particular project is undertaken. It is therefore not relevant to the decision-making process and should not be considered when analyzing the potential costs and benefits of a project.

If a Firm Has Already Paid an Expense or Is