Which of the following best describes a "sunk cost"?
A)Costs that were incurred in the past and cannot be changed
B)Benefits foregone by choosing a particular alternative course of action
C)A factor that restricts the production or sale of a product
D)Expected future data that differ among alternatives

Question

Quizplus · Accepted Answer

A sunk cost refers to costs that have already been incurred in the past and cannot be recovered or changed. These costs should not be factored into future decision-making since they cannot be undone.

Which of the Following Best Describes a "Sunk Cost