Which of the following is a sunk cost?

Question

Quizplus · Accepted Answer

A sunk cost is a cost that has already been incurred and cannot be recovered. The purchase price of the vehicle to be traded in is a sunk cost because it has already been paid and cannot be recovered. The trade-in value of the old vehicle (B) is not a sunk cost because it is a potential future value and not a cost that has already been incurred. Operating costs for a new vehicle (A) and purchase price of new vehicle (C) are not sunk costs because they are ongoing or future costs that can be avoided by not purchasing the new vehicle.

Which of the Following Is a Sunk Cost