Costs that are forever lost after they have been paid are:
A) production costs.
B) fixed costs.
C) sunk costs.
D) variable costs.

Question

Quizplus · Accepted Answer

Sunk costs are costs that have already been incurred and cannot be recovered, regardless of future decisions. Therefore, once they have been paid, they are forever lost. Production costs (A), fixed costs (B), and variable costs (D) can still potentially be recovered or avoided in future decisions, so they are not examples of costs that are forever lost.

Costs That Are Forever Lost After They Have Been Paid